How much will a $50 deposit made today be worth in 20 years if the compound rate of interest is 10 percent?

1. How much will a $50 deposit made today be worth in 20 years if the compound rate of interest is 10 percent?
d. $336.37
2. How much would you pay for the right to receive $80 at the end of 10 years if you can earn 15 percent interest on alternative investments of similar risk?
b. $19.77
3. How much would you pay today to receive $50 in one year and $60 in the second year if you can earn 15 percent interest on alternative investments of similar risk?
a. $88.85
4. What amount invested at the end of each year at 10 percent annually will grow to $10,000 at the end of five years?
b. $1,637.97
5. How much would you pay today for the right to receive nothing a year for the next 10 years and $300 a year for the following 10 years if you can earn 15 percent interest on alternative investments of similar risk?
a. $372.17
6. What is the present value of $500 received at the end of each of the next three years and $1,000 received at the end of the fourth year, assuming a required rate of return of 15 percent?
c. $1,713.37
7. If a landowner purchased a vacant lot six years ago for $25,000, assuming no income or holding costs during the interim period, what price would the landowner need to receive today to yield a 10 percent annual return on the land investment?
c. $44,289.03
8. What is the present value of the following series of cash flows discounted at 12 percent: $40,000 now; $50,000 at the end of the first year; $0 at the end of year the second year; $60,000 at the end of the third year; and $70,000 at the end of the fourth year?
d. $171,836 (without rounding, answer is $171,835.94)
9. Assume a property is priced at $5,000 and has the following income stream (year 1, $1,000; year 2, -$2,000; year 3, $3,000; and year 4, $3,000). Would an investor with a required rate of return of 15 percent be wise to invest at the current price?
b. No, because the project has a net present value of -$1,954.91.

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10. As the level of perceived risk increases,
d. Values decrease and expected returns increase.