You have just invested $5,000,000 into an account that will earn
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You have just invested $5,000,000 into an account that will earn

Question 1: Present Value

You have just invested $5,000,000 into an account that will earn a 10% annual interest rate. You have a rich aunt who promises to give you $5,000,000 in five years (at t=5). You want to retire in 10 years (at t=10). Assuming that you have no other earnings or income over the next 10 years, how money will you have when you retire (at t=10)?

Hint
Accounts & FinancePresent value is the concept that states an amount of money today is worth more than that same amount in the future. In other words, money received in the future is not worth as much as an equal amount received today. Receiving $1,000 today is worth more than $1,000 five years from now. If a person owns $10,000 now and invests it at an interest rate of 10%, then she will have...
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