Question

Using the appropriate tables in the text,

Required:
Determine:
a. the present value of $1,200 to be received in seven years, assuming that the interest (discount) rate is 8 percent per year.
b. the present value of an annuity of seven cash flows of $1,200 each (one at the end of each of the next seven years) for which the interest (discount) rate is 8 percent per year.
c. the future value of a single cash flow of $1,200 that earns 8 percent per year for seven years.
d. the future value of an annuity of seven cash flows of $1,200 each (one at the end of each of the next seven years), assuming that the interest rate is 8 percent per year.



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  • CreatedJuly 23, 2012
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