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Suppose you receive $500 at the end of each year for the next three years a. If the interest rate is 9%, what is
Suppose you receive $500 at the end of each year for the next three years a. If the interest rate is 9%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 9% interest per year. What is the balance compare with your answer in (b)?
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Financial Accounting A User Perspective
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
6th Canadian Edition
470676604, 978-0470676608
