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)