Time Value of Money: Single Cash Flow

    Respond to the questions and complete the problems.QuestionsIn a Word document, respond to the following. Number your responses 1–3.1. Explain the concept of cash flow in corporate finance.2. Explain how present value and future values are related.3. Explain how present values are affected by changes in interest rates.   assume annual compounding periods in the computational problems.1. If you deposited $250 in your savings account today, and the bank pays 4 percent interest per year, how much would you have in your savings account after 9 years?o Recalculate the account balance using a 6 percent interest rate and a 7 percent interest rate.2. A $450 deposit earns 6 percent interest in the first year, 3 percent interest in the second year, and 7 percent interest in the third year. What is the future value at the end of the third year?3. What is the annual rate of return for an $8,000 investment if in five years it grows to $12,500?o Assuming the growth occurred in six years and then eight years, recalculate the rate of return for these two scenarios.