00:01
So assuming the interest rate is 7%, what is the present value of a stream of payments of 655? so the regular payment is 655.
00:27
Well, this is then the payment divided by the interest rate, so this is 655, divided by 0 .07.
00:37
7 and it is equal to 9 3 .14.
00:51
So that is answer d.
00:58
And then for question 4, we have, so this was question 3, question 4, we deposit 117 ,000 every year, yearly, for 10 years at an interest rate of 7 % but you leave it invested for another 5 year.
01:33
So let's first calculate the future value that then is going to be 117000 times 1 .07 to 10 minus 1 .07 to 10.
01:47
So at the end of 10 years, this is going to be 1616162524 .41.
02:11
Now you leave this, invest for another 5 years at 7%...