Question
A.) Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to
A.)
Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent.
An initial $200 compounded for 1 year at 4%.
An initial $200 compounded for 2 years at 4%.
The present value of $200 due in 1 year at a discount rate of 4%.
The present value of $200 due in 2 years at a discount rate of 4%.
B.)
An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $400 at the end of Year 5, and $600 at the end of Year 6.
If other investments of equal risk earn 4% annually, what is its present value? Round your answer to the nearest cent.
If other investments of equal risk earn 4% annually, what is its future value? Round your answer to the nearest cent.
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