Question: For the cash flows shown in the diagram determine the future
For the cash flows shown in the diagram, determine the future worth in year 8 at an interest rate of 10% peryear.
Answer to relevant QuestionsIncome from the sale of application software (apps) is usually constant for several years and then decreases quite rapidly as the market gets close to saturation. Income from one smart phone app was $38,000 in years 1 ...The net present worth in year 0 of the following series of incomes and expenses at 8% per year is closest to:(a) $14,300 (b) $15,500(c) $16,100 (d)$16,500Determine the number of times interest would be compounded in 6 months from the interest statements (a) 18% per year, compounded monthly(b) 1% per month(c) 2% per quarter.For an effective annual rate ia of 15.87% compounded quarterly, determine (a) The effective quarterly rate and (b) The nominal annual rate.(c) What is the spreadsheet function to find the nominal annual rate above?Interest is compounded quarterly, and single payment cash flows (that is, F and P) are separated by 5 years. What must the compounding period be on the interest rate, if the value of n in the P/F orF/P equation is (a) n = 5, ...
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