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(a) The future value in three years of $2,000 deposited today in a savings account with interest compounded annually at 4 percent. (b) The present
(a) The future value in three years of $2,000 deposited today in a savings account with interest compounded annually at 4 percent. (b) The present value of $9,000 to be received in six years, discounted at 12 percent. (c) The present value of an annuity of $5,000 per year for seven years discounted at 18 percent. (d) An initial investment of $42,680 is to be returned in eight equal annual payments. Determine the amount of each payment if the interest rate is 10 percent. (e) A proposed investment will provide cash flows of $30,000, $9,000, 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 $ 0 Year 2 $ 0 Year 3 $ 0 (f) Find the present value of an investment that will pay $9,000 at the end of Years 10, 11, and 12. Use a discount rate of 12 percent. Check
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