1. If you receive $100 in the 2nd year and $250 in the 4th year at...

1. If you receive $100 in the 2nd year and $250 in the 4th year at an interest rate of 5.5%, what is the total PV of these lump sums? ANSWER: $291.65

2. What is the PV of an investment that yields $500 to be received in 5 years and $1000 to be received in 10 years at an interest rate of 4%? ANSWER: $1086.53

(Can someone please show me how you solve this, with the steps. Also how to calculate/input it onto excel. Thank you so much! ( :

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Expert Solution

PV = FV / (1+i)^n

jeff jeffy answered 2 years ago

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