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Suppose that you have the following cash flows. End of year 1 2 Cash flow $300 $450 $500 $650 3 4 If the annual interest
Suppose that you have the following cash flows. End of year 1 2 Cash flow $300 $450 $500 $650 3 4 If the annual interest rate is 4%, then what is the correct formula to calculate the future worth at the end of 4th year? F = $ 300(1.04)4 + $ 450(1.04)3 + $500(1.04)2 + $ 650(1.04) F= $300(1.04)-1 + $ 450(1.04)-2 + $500(1.04)-3 + $650(1.04)-4 F = $ 300(1.04)1 + $ 450(1.04)2 + $500(1.04)3 + $ 650(1.04) F = $300(1.04)3 + $ 450(1.04)2 + $500(1.04)+ $650 QUESTION 12 Hernandez deposits $1,000 two years later from today. He plans to withdraw his entire balance five years later from today. Assuming an interest rate of 10%, how much will he be able to withdraw at the end of the 5th year? $1,100.00 $1,300.00 $1,331.00 $1,610.51
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