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19. You have just applied for a job contract at XYZ Company. This company 2p will pay you $175 at the end of the first
19. You have just applied for a job contract at XYZ Company. This company 2p will pay you $175 at the end of the first year, $252 at the end of the second year, and $300 at the end of the fourth year. Currently you have a saving account in the bank that pays you a rate of 8% compounded annually. What is the future value of such contract at the end of the fourth year? a) $1,000 b) $300 c) $657 $557 O e) None of the above 2. 20. Assume that you will receive $2,000 a year in Years 1 and 2, zero dollars in year 3, $4,000 a year in Years 4 and 5, and $3,000 in Year 6, with all cash flows to be received at the end of the year. If you require a 14 percent rate of return. You will accumulate (future value) at end of year 6: * O a) $ 9,851 Ob) $13,250 O c) $11,714 O d) $18,547 e) None of the above
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