At the end of year 3 future value = CF1 * (1+I)^2 + CF2 * (1 + I)^1 + CF3 * (1 + I)^0
= 500 * (1+6%)^2 + 870 * (1+6%)^1 + 830 * (1+6%)^0
= 2314
Question 1 (1 point) What is the future value (in $) of cash flows 1-3 at...
What is the future value (in $) of cash flows 1-3 at the end of year 3, assuming a 6% interest rate (compounded annually)? End of year Cash flow 1 $500 2 841 3 720 4 3,500 5 1,250 6 4,530 7 2,350
What is the future value (in $) of cash flows 1-3 at the end of year 3, assuming a 6% interest rate (compounded annually)? End of year Cash flow 1 $600 2 829 3 710 4 3,500 5 1,250 6 4,530 7 2,350
Exercise A3-11 Practice with Tables Use Future Value Tables and Present Value Tables, or your calculator, to complete the requirements below. Required: Round your answers to the nearest cent. a. Determine the future value of a single cash flow of $5,000 that earns 7% interest compounded annually for 10 years. $ b. Determine the future value of an annual annuity of 10 cash flows of $500 each that earns 7% compounded annually. $ c. Determine the present value of $5,000...
1.Future Value: Ordinary Annuity versus Annuity Due What is the future value of a 3%, 5-year ordinary annuity that pays $250 each year? Round your answer to the nearest cent. $ If this were an annuity due, what would its future value be? Round your answer to the nearest cent. $ 2. Present and Future Value of an Uneven Cash Flow Stream An investment will pay $100 at the end of each of the next 3 years, $400 at the...
2 pts Question 2 Vhat is the future value, five years from now, of $60 monthly payments using an interest rate of 0.5% compounded monthly? 300.38 Question 3 2 pts What uniform series of cash flows is equivalent to a $100,000 cash flow 30 years from now, if the uniform cash flows occur at the end of the year for the next 30 years and the periodic interest rate is 12% compounded annually? 414.37
Question 3 To find the future value of a stream of cash flows you just calculate the future value of each flow and then add them. True Question 7 A decline in the interest rate decreases the present value of those payments and the price of bonds. Trun
Cash-flow A consists of a lump sum of $1,000 today. What is the future value (FV) of cash-flow A in year 6 if the interest rate is 5% compounded annually?
A) What is the future value of this cash flow at 5% interest rate at the end of year 7? B) What is the future value of this cash flow at 9% interest rate at the end of year 7? C) What is the future value of this cash flow at 14% interest rate at the end of year 7?
1. What is the discount rate assuming the present value of $840 at the end of 1-year is $765? 2. What is the Future value of $3,500 deposited for 12 years at 5% compounded annually? 3. If $2,800 is discounted back 4 years at an interest rate of 8% compounded semi-annually, what would be the present value? 4. Determine the future value of $6,000 after 5 years if the appropriate interest rate is 8%, compounded monthly.
Future Value of an Annuity Due What is the future value on December 31, 2025, of 6 annual cash flows of $50,000 with the first cash flow being made on December 31, 2019, and interest at 9% compounded annually?