Question
1.Find the Future Value in 8 years of $2,821 to be invested today if you can earn a rate of return of7.66%. (round to the
1.Find the Future Value in 8 years of $2,821 to be invested today if you can earn a rate of return of7.66%. (round to the nearest cent & enter the answer as a positive value)
2.You plan to travel to Europe in exactly 2 years. At that time, the trip will cost you $2,511. Assume you can earn 11% from your savings account. How much money do you need to have in your account today so you can afford the trip?(round to the nearest cent & enter the answer as a positive value)
3.You are offered an investment that will give you $24,325 in 11 years in exchange for $6,229 today. What is your expected rate of return on this investment? (round to 2 decimal places in percentage terms..for exampleenter 9.22 for 9.22%)
4.All else equal, increasing the discount rate will always lower the present value of a positive cash flow stream. T/F
5.Assume you put away a fixed amount today for 20 years at a positive rate of return. You will earn more money during the last ten years than you did during the first 10 years. T/F
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