Question: Draw time lines for (1) a $100 lump sum cash flow at the end of Year 2; (2) an ordinary annuity of $100 per year

Draw time lines for (1) a $100 lump sum cash flow at the end of Year 2; (2) an ordinary annuity of $100 per year for 3 years; and (3) an uneven cash flow stream of-$50, $100, $75, and $50 at the end of Years 0 through 3. 1. What's the future value of $100 after 3 years if it earns 10%, annual compounding? 2. What's the present value of $100 to be received in 3 years if the interest rate is 10%, annual compounding? What annual interest rate would cause $100 to grow to $125.97 in 3 years? If a company's sales are growing at a rate of 20% annually, how long will it take sales to double? What's the difference between an ordinary annuity and an annuity due? What type of annuity is shown here? 0-------1------2-----3 0----$100--$100--$100 How would you change it to the other type of annuity? 1. What is the future value of a 3-year, $100 ordinary annuity if the annual interest rate is 10%? 2. What is its present value? 3. What would the future and present values be if it was an annuity due

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