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DRAW A CASH FLOW DIAGRAM FOR EACH What is the present worth of the sum of investments: $900 now, $1600 four years from now, and
DRAW A CASH FLOW DIAGRAM FOR EACH
- What is the present worth of the sum of investments: $900 now, $1600 four years from now, and $800 six years from now at an interest rate of 8% per year?
- You plan to start saving money by depositing $500 into a savings account one year from now.You estimate that the deposits will increase by $100 per year for 9 years thereafter.What would be the present worth of the investments if the interest rate is 5% per year?What would be the equivalent uniform annual series?
- How much should you be willing to pay for an annuity that will provide $300 every 3 months for 6 years starting 3 months from now if you want to make a nominal 12% per year compounded quarterly?In other words, what is the present worth of the benefit that is described here?
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