Finance Homework

1. What are the three components of Required Rate of Return?

2. Briefly explain the difference between Simple Interest and Compound Interest.

3. What is future value?

4. What is present value?

5. What is the future value of $1,000 invested at 7% for 10 years?

6. What is the present value of $2,000 received after 7 years discounted at 10%?

7. What is the future value of $1,000 invested at the beginning of each year for 20 years at 8%?

8. What is the present value of $1,000 received at the end of each year for 20 years at 8%?