Question

Trey will receive $7,500 at the end of Year 2. At the end of the following two years, he will receive $9,000 and $12,500, respectively. What is the future value of these cash flows at the end of Year 6 if the interest rate is 8 percent? $32,907.67 $38,418.80 $36,121.08 $33,445.44 $39,010.77

0 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Trey will receive $7,500 at the end of Year 2. At the end of the following...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • You are to receive $1,000 at the end of one year, $1,200 at the end of...

    You are to receive $1,000 at the end of one year, $1,200 at the end of two years; $5,300 at the end of three years. If the interest rate is 10 %, the present value of these cash flows is: $3,044 $6,198 $7,500 $2,878 $5,883

  • Suppose you receive $120 at the end of each year for the next three years. a....

    Suppose you receive $120 at the end of each year for the next three years. a. If the interest rate is 8%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 8% interest per year What is the balance in the account at the end of each of the next...

  • Kathy will receive 6,350 at the end of his year, 7,280 at the end of next...

    Kathy will receive 6,350 at the end of his year, 7,280 at the end of next year and 8,470 at the end of the following year. What is the future value of these cash flows at the end of year 3 if the interest rate is 8%? a. 18,845 b. 19,542 c. 22,008 d. 23,739 e. 24,612

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

    Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 10%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 10% interest per year. What is the balance in the account at the end of each of the next...

  • Mrs. Crawford will receive $7,500 a year for the next 18 years from her trust. Use...

    Mrs. Crawford will receive $7,500 a year for the next 18 years from her trust. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. If a 11 percent interest rate is applied, what is the current value of the future payments? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value

  • Del Monty will receive the following payments at the end of the next three years: $15,000,...

    Del Monty will receive the following payments at the end of the next three years: $15,000, $18,000, and $20,000. Then from the end of the 4th year through the end of the 10th year, he will receive an annuity of $21,000 per year. At a discount rate of 16 percent, what is the present value of all three future benefits?  (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value of all future benefits = $____

  • Future Value of Uneven Cash Flow 22. You expect to receive $300, $400, $500, $300, $400...

    Future Value of Uneven Cash Flow 22. You expect to receive $300, $400, $500, $300, $400 and $500 at the end of each year over the next 6 years. If an annual interest rate is 4 percent, what is the future value of this uneven cash flow stream? a. $2,636 23. You expect to receive $300, $400, $500, $300, $400 and $500 at the end of each year over the next 6 years. If an annual interest rate is 2...

  • Suppose you receive $100 at the end of each year for the next three years. (a)If...

    Suppose you receive $100 at the end of each year for the next three years. (a)If the interest rate is 9%, what is the present value (in $) of these cash flows? Compute the PV of this annuity both as the sum of PV of each cash flow and using the annuity formula. (Round your answers to the nearest cent.) using the sum of PV $ using the annuity formula $ (b)What is the future value (in $) of the...

  • 37. Consider a project with the following cash flows: t Year t=0 ??? t= $7,500 =2...

    37. Consider a project with the following cash flows: t Year t=0 ??? t= $7,500 =2 $12,500 t= 3 $15,000 = 4 $17,500 The Payback Period of this project is 2.5 years. The appropriate discount rate is 13%. Find the Net Present Value of the project. (Note that the cash flow for t=0 is not provided to you that is, you must first solve for it)

  • Suppose you receive $180 at the end of each year for the next three years. a....

    Suppose you receive $180 at the end of each year for the next three years. a. If the interest rate is 9%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? C. Suppose you deposit the cash flows in a bank account that pays 9% interest per year. What is the balance in the account at the end of each of the next...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT