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Week 5 - SQT 4 Problem 1 Find the following amounts assuming an ordinary annuity a. Present value of $900 per year for 10 years
Week 5 - SQT 4 Problem 1 Find the following amounts assuming an ordinary annuity a. Present value of $900 per year for 10 years at 8 percent. b. Future value of $900 per year for 10 years at 8 percent. c. Present value of of $450 per year for 4 years at 4 percent. d. Future value of $450 per year for 4 years at 4 percent. Problem 2 Consider the following cash flow stream: Year Cash Flow 0 $ 1 $ 450 2 $ 600 3 $ 700 4 $ 800 5 $ 800 $ a. !What is the present value of the cash flows if the discount irate is 10%? Use a cash OUTflow of $3,000 in year 0. What is the Net present value of the cash flows? b
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