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3.Future Value and Multiple Cash Flows [LO1] Fuente, Inc., has identified an investment project with the...

3.Future Value and Multiple Cash Flows [LO1] Fuente, Inc., has identified an investment project with the following cash flows. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? What is the future value at a discount rate of 11 percent? At 24 percent?
Year Cash Flow
1 $1,075
2 1,210
3 1,340
4 1,420



9.Calculating Annuity Values [LO2] Prescott Bank offers you a five-year loan for $75,000 at an annual interest rate of 6.8 percent. What will your annual loan payment be?

12.Calculating EAR [LO4] Find the EAR in each of the following cases:
Stated Rate (APR) Number of Times Compounded Effective Rate (EAR)
9% Quarterly
16 Monthly
12 Daily
11 Infinite (Ross 184)


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