Moving Cash Flow You are scheduled to receive a $580 cash flow in one year, a $880 cash flow in two years, and pay a $480 payment in three years. If interest rates are 9 percent per year, what is the combined present value of these cash flows?

$980.00

$1,460.00

$1,643.44

$902.14

Compounding with Different Interest Rates A deposit of $330 earns interest rates of 7.3 percent in the first year and 10.3 percent in the second year. What would be the second year future value?

$390.56

$388.08

$718.08

$704.19

Future Value At age 20 you invest $2,300 that earns 10.25 percent each year. At age 35 you invest $2,300 that earns 13.25 percent per year. In which case would you have more money at age 60?

At age 20 invest $2,300 at 10.25 percent.

There is not enough information to determine which case earns the most money at age 60.

Both yield the same amount at age 60.

At age 35 invest $2,300 at 13.25 percent.

Interest-on-Interest Consider a $1,200 deposit earning 6 percent interest per year for 9 years. How much total interest is earned on the original deposit (excluding interest earned on interest)?

Interest-on-Interest Consider a $1,200 deposit earning 6 percent interest per year for 9 years. How much total interest is earned on the original deposit (excluding interest earned on interest)?

$64.80

$164.52

$812.52

$648.00