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1. (10 points) You invest $300 today and hold this investment for 6 years. This investment will grow at a rate of 8% each year.
1. (10 points) You invest $300 today and hold this investment for 6 years. This investment will grow at a rate of 8% each year. What is the value of this investment at the end of 6 years? Value of Investment at the End of 7 Years 2. (20 points) You have just signed a lucrative contract with a record studio. They will pay you $120,000 each year for the next 5 years. You believe that your personal cost of capital is 9%. What is the present value of this stream of cash flows? Fill in the Blue Squares below
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