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Suppose you receive $200 at the end of each year for the next threa years. a. It the interest rate is 8%, what is the
Suppose you receive $200 at the end of each year for the next threa years. a. It the interest rate is 8%, what is the present value af these cash fows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash nows in a bank account that pays 8% interest per year what is the balance in the acount at the end of each of the next three years (after your depasit is made]? How dces the final bank balance compare with your answer in (b)? a. If the interest rate is 8%, what is the present value of these cash flows? The present value of these cash flows is (Round to the nearest cent} b. What is the future value in three years of the present value you computed in (a)? The future vakue in three years is (Round to the nearest cent) Enter your answer in each of the answer boxes
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