Calculate the future value at year 4 of the cash flows on the timeline below. The...

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Answer 1

Answer #1

Q1
Future Value at year 4	552.64
Statement showing computations at 6%
Year	Cash flow	Future Value at end of Year 4	Working Notes
1.00	100.00	119.10	100*1.06^3
2.00	150.00	168.54	150*1.06^2
3.00	250.00	265.00	250*1.06^1
4.00		-	-
	500.00	552.64


Q2 Implied rate =10.5
5000 = 3035 *(1+r/100)^5
1.64745 = (1+r/100)^5
(1.64745)^(1/5) = (1+r/100)
1.105 = 1+r/100
.105 = r/100
r = 10.5%

Answer 2

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