Question
You are planning to set aside the following amounts of money in the next several years, that are part of your grad school tuition savings:
| You are planning to set aside the following amounts of money in the next several years, that are part of your grad school tuition savings: |
| Year | Cash Flow |
| 1 | $525 |
| 2 | 950 |
| 3 | 1,125 |
| 4 | 1,325 |
| a. | The bank in which these amounts will be deposited will be paying you a 9 percent interest. How much will you have in your bank in 4 years from these deposits? |
| b. | What is the future value at a discount rate of 18 percent? |
| c. | What is the future value at discount rate of 29 percent? |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
