Question
James would like to deposit enough money in a savings account to have $8,000 at the end of year 3. Assuming the investment will earn
James would like to deposit enough money in a savings account to have $8,000 at the end of year 3. Assuming the investment will earn 5% compounded annually, what amount should James deposit in the savings account today? Round your answer to the nearest dollar.
Shadow Corp. would like to invest enough cash to have $500,000 at the end of year 3. Assume the interest on the investment is compounded annually at 8%. How much money should Shadow Corp invest today to have $500,000 at the end of year 3?
The value of Investment A at the end of year 5 is $20,000. Assuming that interest is compounded annually, and the interest rate is 8%, what is the present value of this investment at the beginning of year 1?
The value of Investment B at the end of year 6 is $50,000. Assuming that interest is compounded semi-annually, and the interest rate is 8%, the present value of Investment B can be calculated by multiplying $50,000 times the present value factor of
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