What is the time t=0 value of the cash flow stream in the ta…

What is the time t=0 value of the cash flow stream in the table below if the current interest rate is 5% per year, compounded annually? Note the different cash flow in year 9. Time         Cash Flow End of year 1: $400 End of year 2: $400 End of year 3: $400 End of year 4: $400 End of year 5: $400 End of year 6: $400 End of year 7: $400 End of year 8: $400 End of year 9: $100 End of year 10: $400 End of year 11: $400 End of year 12: $400    

You have just been given a certificate that entitles its hol…

You have just been given a certificate that entitles its holder to receive a $1,800 payment every two years forever. The first $1,800 payment will be made one year from today, the second$1,800 payment will be made three years from today, and so on. If the current interest rate is 10% per year, compounded annually, what is the time t=0 present value of this certificate

Instead of listening to your parents’ advice, you spend more…

Instead of listening to your parents’ advice, you spend more money and save nothing for retirement for the first seven years out of college. After turning 30, reality hits and you decide you need to start saving towards your retirement goal.  You make your first deposit at the end of that year when you turn 31 (t=8)and continue making annual deposits until your last deposit at age 60 (t=37). Relative to the amount you needed to save per year if you started shaving right out of college (i.e., relative to your answer to the previous answer), about how much larger do your deposits now have to be given the 7-year delay?