Question 4 (3 pts) 1. (1 pts) Suppose you plan to deposit $100 into an account...

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Question 4 (3 pts) 1. (1 pts) Suppose you plan to deposit $100 into an account in one year and $300 into the account in three

business economics

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Answer 1

Answer #1

1. FV = PV * (1 + r)ⁿ

FV is the future value

PV is the present value

r is the rate of return and n is the tenure

FV = 100 * (1 + 0.08)⁴ + 300 * (1 + 0.08)²

FV = 136.0488 + 349.92

FV = $485.97

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Answer 2

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