Question: can you answer all three? 7. Suppose you will receive $2,000 two years from today (at the end of the second year) and $3,000 five
can you answer all three?

7. Suppose you will receive $2,000 two years from today (at the end of the second year) and $3,000 five years from today (at the end of the fifth year). What is the present value of this stream of cash flows when the interest rate is 6% per year (compounded annually)? 1) $4,022 2) $4,450 3) $4,906 4) $5,000 Suppose you will receive $2,000 two years from today (at the end of the second year) and $3,000 five years from today (at the end of the fifth year). What is the future value of this stream of cash flows (at the end of the fifth year) when the interest rate is 6% per year (compounded annually)? 8. 1) $5,000 2) $5,077 3) $5,382 4) $5,705 9. Calculate the balance you would have in an account after 4 years assuming $6,000 was deposited today at 16% compounded semiannually and quarterly. 1) $11,106 (semiannually) and $11,238 (quarterly) 2) $10,864 (semiannually) and $11,238 (quarterly) 3) $10,864 (semiannually) and $11,106 (quarterly) 4) $9,670 (semiannually) and $10,864 (quarterly)
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