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Given a 6 percent interest rate, compute the year 8 future value of deposits made at...

Given a 6 percent interest rate, compute the year 8 future value of deposits made at the end of years 2, 3, and 5 of $1,931, $1,202, and $1,704, respectively. (Do not round intermediate calculations and round your final answer to the nearest dollar.)

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Answer #1
Compounding rate 6.000%
Year 0 1 2 3 4 5 6 7 8
Cash flow stream 0 0 1931 1202 0 1704 0 0 0
Compounding factor 1.594 1.504 1.419 1.338 1.262 1.191 1.124 1.060 1.000
Compounded cash flows   0.000 0.000 2739.160 1608.547 0.000 2029.491 0.000 0.000 0.000
FV = Sum of compounded cash flows
FV= 6377
Where
Compunding factor = (1 + rate)^(Last period-Corresponding period in years)
Compounded Cashflow= Cash flow stream*compounding factor
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