Question: Problem 0 3 . 0 4 5 - Future value of discrete cash flows Today, an engineer deposited $ 3 2 , 0 0 0

Problem 03.045- Future value of discrete cash flows
Today, an engineer deposited $32,000 into an account that pays interest at 8% per year compounded semiannually. If there is no interperiod compounding and withdrawals of $1100 in months 2,11, and 23 are already planned, what will be the future value at the end of 3 years?
The future value wouldbe $
hint #0
At which point of time are the withdrawals assumed to be made when the payment period is shorter than the compounding period?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

You are able to deposit $750 into a bank term deposit today, and you will only withdraw the money once the balance is $1,100. If the bank pays 6.0 percent interest per annum, how long will it take...

Q:

Consider the businesses uneven cash flow analysis presented to you for the various scenarios given below and of course for your calculation: Show your calculations on this sheet or attach an...

Q:

Please help me with questions 1-18 , has to be in Excel 6.1. Future value with multiple cash flows: Konerko, Inc., expects to earn cash flows of $1 years. If the company uses an 8 percent discount...

Q:

Your inheritance will pay you $100,000 a year for five years beginning now. You can invest it in a CD that will pay 7.75 percent annually. What is the present value of your inheritance? (Round to the...

Q:

Case 12-08 Going, Going, Gone First Class Telecommunications Inc. (?FCT? or ?the Company?) is a leading regional wireless telecommunications service provider in the United States serving...

Q:

Case 12-08 Going, Going, Gone First Class Telecommunications Inc. ("FCT" or "the Company") is a leading regional wireless telecommunications service provider in the United States serving...

Q:

Case 12-08 Going, Going, Gone First Class Telecommunications Inc. ("FCT" or "the Company") is a leading regional wireless telecommunications service provider in the United States serving...

Q:

Hello, I need help on how to go about the transactions for the journal entries, general ledger, and adjusted trial balance. I am not sure if I am doing them right...so it would be great to confirm if...

Q:

Case 12-08 Going, Going, Gone First Class Telecommunications Inc. ("FCT" or "the Company") is a leading regional wireless telecommunications service provider in the United States serving...

Q:

Case 12-08 Going, Going, Gone First Class Telecommunications Inc. (?FCT? or ?the Company?) is a leading regional wireless telecommunications service provider in the United States serving...

Q:

After the Iraqi invasion of Kuwait in August 1990, the world price of crude oil doubled to more than $ 30 per barrel in anticipation of reduced supply. Immediately, the oil companies raised the...

Q:

Figure displays the waveforms of four signals s1 (t), s2 (t), s3 (t) and s4 (t). (a) Using the Gram-Schmidt orthogonalization procedure, find an orthonormal basis for this set of signals. (b)...

Q:

Novak Corporation is preparing its 2 0 2 5 statement of cash flows, using the indirect method. Pre affect the statement. Using the code below, indicate how each item will affect Novak's 2 0 2 5 stat...

Q:

A particle is moving in three dimensions and its position vector is given by; r(t) = (4, 4t + 2, 3t)i + (4, 5t - 2, 3)2 + (3, 3t + 3, 1t)k where r is in meters and t is in seconds. Determine the...