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Please answer questions E and F a. The future value in two years of $10,500 invested today in a certificate of deposit with interest compounded
Please answer questions E and F
a. The future value in two years of $10,500 invested today in a certificate of deposit with interest compounded annually at 10 percent. $ 12,705 b. The present value of $12,000 to be received in five years, discounted at 8 percent. $ 8,167 c. The present value of an annuity of $25,500 per year for four years discounted at 12 percent. $ 77,452 d. An initial investment of $47,220 is to be returned in six equal annual payments. Determine the amount of each payment if the interest rate is 16 percent. $ 12,815 e. A proposed investment will provide cash flows of $12,000, $15,000 and $13,000 at the end of Years 1, 2, and 3, respectively. Using a discount rate of 16 percent, determine the present value of these cash flows. Present Value Year 1 $ 10,524 x Year 2 11,535 x Year 3 8,775 x Total 30,834 x $ f. Find the present value of an investment that will pay $12,000 at the end of Years 8, 9, and 10. Use a discount rate of 12 percent. $ 10,392 XStep by Step Solution
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