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Time Value of Money: Basics Using the equations and cables in Appendix 12A of this chapter, detemmine the answers to each of the follow ng
Time Value of Money: Basics Using the equations and cables in Appendix 12A of this chapter, detemmine the answers to each of the follow ng independent sic.aations. Round answers to the nearest whole number. (a) I he future value in two years of $2,000 deposited today in a savings account with interest compounded annually at s percent. (o) The present walue of $8,000 to be received in four years, discounted at 12 percent. (c) The present value of an annuicy of $2,000 per year for five years cliscounted at 14 percent. (d) An ini tial irves ment ul $32,010 is to be returned in eght equal annal payments. Delermine the arnount of each payment il the interest rate is 12 pertert, (f) Find the present walue of an investment that will pay $5,000 at the end of Years 10,11 , and 12 . Use a discount rate of 14 percent. x
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