What do you think about the following statement? “I am going to receive $100 two years from now and $200 three years from now, so I am getting a $300 future value.” How could the two cash flows be compared or combined?
Answer to relevant QuestionsShow how the Rule of 72 can be used to approximate the number of years to quadruple an investment.How much would be in your savings account in 11 years after depositing $150 today if the bank pays 8 percent per year?Compute the present value of an $850 payment made in 10 years when the discount rate is 12 percent.What is the value in year 4 of a $1,000 cash flow made in year 6 if interest rates are 8 percent?You invested $2,000 in the stock market one year ago. Today, the investment is valued at $1,500. What return did you earn? What return would you need to get next year to break even overall?
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