Question

What would you pay for the following investment if your opportunity cost of risk is 4.5%?...

What would you pay for the following investment if your opportunity cost of risk is 4.5%? You will receive $770 today, $1,000 in three years, $500 in six years, and after that starting in year seven receive payments of $1,200 a year for ten years.

Approximately how long will it take to double your money if you get a 4% annual return on your investment?

You invest $450 today in an account that will pay you 5.5% per year. You will not need the money until you take your trip around the world in seven years. What is the FVIF?

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