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(a) The future value in three years of $1,000 deposited today in a savings account with interest compounded annually at 4 percent. $ (b) The
(a) The future value in three years of $1,000 deposited today in a savings account with interest compounded annually at 4 percent. $ (b) The present value of $8,000 to be received in two years, discounted at 12 percent. $ is (c) The present value of an annuity of $9,000 per year for three years discounted at 10 percent. $ (d) An initial investment of $17,241 is to be returned in eight equal annual payments. Determine the amount of each payment if the interest rate is 8 percent. (e) A proposed investment will provide cash flows of $20,000,$6,000, and $6,000 at the end of Years 1,2 , and 3 , respectively. Using a discount rate of 14 percent, determine the present value of these cash flows. Year 1$ x Year 2$ Year 3$ (f) Find the present value of an investment that will pay $3,000 at the end of Years 10,11 , and 12 . Use a discount rate of 12 percent. $
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