1. Suppose you deposit $2,000 in the bank...
a. How much will you have in 8 years if the interest rate is 7%?
b. How much will you have in 5 years if the interest rate is 8%?
c. How much will you have in 15 years if the interest rate is 2%?
2. Find the present value for
a. $1,000 received in 4 years if the interest rate is 4%.
b. $1,000 received in 4 years if the interest rate is 6%.
c. $1,000 received in 4 years if the interest rate is 2%
3. What happens to the PV as the interest rate changes?