1-Suppose you deposit $ 5 000 in the bank. How much can you raise after 10 years when discount rate is 5% for the first four years and then rises to 7% annually?
2 -A used car costs $ 120 000. car can be sold for $ 10 000 after six years. What
is the annual cost (depreciation and interest costs) if the discount rate is 9%?
3- A securities provide a payout of $ 30 000 each year for 6 years. Suppose first
amount comes in one year. What is the sale value of the security if the discount rate is 7 %?