Suppose you receive $100 at the end of each year for the next three years. What...

Question

Question

Suppose you receive $100 at the end of each year for the next three years.

What is the future value in three years at 8% interest?

Answer 1

Answer #1

.

Calculation of future value

Future value @Year 1 end=$100.00

Future value @Year 2 end=$100*(1+8%)+100 = $208

Future value @Year 3 end=$208*(1+8%)+100 = $324.64

Future value at end of Year 3 = $324.64

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Answer 2

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