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FOR EACH OF THE CASES SHOWN IN THE TABLE BELOW, CALCULATE THE FUTURE VALUE OF THE SINGLE CASH FLOW DEPOSITED TODAY THAT WILL BE AVAILABLE

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FOR EACH OF THE CASES SHOWN IN THE TABLE BELOW, CALCULATE THE FUTURE VALUE OF THE SINGLE CASH FLOW DEPOSITED TODAY THAT WILL BE AVAILABLE AT THE END OF THE DEPOSIT PE RIOD IF THE INTEREST IS COMPOUNDED ANNUALLY, SEMI ANNUALLY AND QUARTERLYAT THE RATE SPECIFIED OVER THE GIVEN PERIOD SEMI CASE SINGLE CASH INTEREST DEPOSIT PERIOD ANNUAL QUARTERLY (extra credit) (extra credit) RATE (YEARS) ANNUAL FLOW $750 S3,250 $9,500 S10,000 8% 12% 16% 20% 20 2. WHAT SINGLE INVESTMENT MADE TODAY, EARNING 14% ANNUAL INTEREST WILL BE WORTH S9,000 AT THE END OF 7 YEARS 3.WHAT IS THE PRESENT VALUE OF $7,000 TO BE RECEIVED AT THE END OF 5 YEARS IF THE DIS- COUNT RATE IS 11%? 4.WHAT IS THE MOST YOU WOULD PAY TODAY FOR A PROMISE TO REPAY YOU $3,000 AT THE END OF 5 YEARS IF YOUR OPPORTUNITY COST IS 9%? 5, 6, 7 PORTFOLIO ANALYSIS YEAR 2016 2017 2018 2019 2020 ASSET BEER 7% 10% 13% 16% 19% ASSET WINE 5% 9% 14% 20% 25% ASSET BOURBON 10% 11% 12% 13% 14%

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