Question
A) Derek will deposit $2,965.00 per year for 19.00 years into an account that earns 10.00%. The first deposit is made today. How much will
A) Derek will deposit $2,965.00 per year for 19.00 years into an account that earns 10.00%. The first deposit is made today. How much will be in the account 19.0 years from today? Note that he makes 19.0 total deposits.
B) Derek will deposit $2,319.00 per year for 11.00 years into an account that earns 8.00%. Assuming the first deposit is made 6.00 years from today, how much will be in the account 32.00 years from today?
C)What discount rate would make you indifferent between receiving $3,301.00 per year forever and $5,029.00 per year for 24.00 years? Assume the first payment of both cash flow streams occurs in one year.
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