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At the end of each of the next 5 years, you will deposit the following amount into your savings account: Year Cash Flow 1 $200
At the end of each of the next 5 years, you will deposit the following amount into your savings account:
Year | Cash Flow |
1 | $200 |
2 | $300 |
3 | $400 |
4 | $300 |
5 | $600 |
You expect interest rates to be higher in the future. Your best guess of what rates will be in the future is:
Rate 1 year from now | 10% |
Rate 2 years from now | 11% |
Rate 3 years from now | 12% |
Rate 4 years from now | 13% |
If you forecast of interest rates is correct, how much money will you have 5 years from now?
Hint: Find your balance at the end of each year.
Round your answer to 2 decimal places, for example 100.12.
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