Part 1:

What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 8%? (the cash flows occur at the end of each period) (round answer to nearest penny and enter in the following format 12345.67)

Year 0 cash flow = 1000

Year 1 cash flow = 1100

Year 2 cash flow = 200

Year 3 cash flow = 2500

Answer:

Part 2:

An insurance company is offering quarterly payments of $720 for the next25 years in exchange for a one-time payment of $18,000 today. What is the per annum rate of return on this offer? (Round to nearest 100th of a percent and enter your answer as a percentage, for example, as 12.34)

Answer: