You wish to have $100,000 in 15 years. How much should you set aside today if the discount rate is 14%? N = i = % years To answer this question, I should calculate: OFV OPMT OPV I should set aside today: $ Calculation details (recommended): (Include two decimal places)

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A: Honor code: Since you have posted a question with multiple sub-parts, we will solve the first three…

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A: Present value = Amount*PV$1(n=3, i=8%)

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A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

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A:

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A: NOTES: PV : Present Value FV : Future Value r : rate n : number of years.

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.