Question: Never round intermediary steps (or keep at least 4 decimal places), SHOW ALL WORK, and LABEL your answers. Problem #8: Calculating the Future Value of
Problem #8: Calculating the Future Value of an Annuity You have $350 available each month to put into an E*Trade account to save for a new car. You have consistently earned -64% per month How much will you have in two years for a down payment on a car? What would you have if you could increase your payment to $400? Problem #9: Calculating the Future Value of a Series of Cash Flows Your company has identified an investment project with the following cash flows: A. If your company requires a 10% discount rate, what is the future value of these cash flows ? $ 11,900 Cash Flow Year 1 2 3 4 5 6 $ $ $ $ $ 10,900 15,400 19,000 19,800 21,500 B. If your company requires a 18% discount rate, what is the future value of these cash flows? C. If your company requires a 5% discount rate, what is the future value of these cash flows
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