Question: STEP 1:Picture the problem We can set up a timeline to identify the cash flows from the investment as follows: iequals10% The image is a
STEP 1:Picture the problem We can set up a timeline to identify the cash flows from the investment as follows: iequals10% The image is a timeline that shows the cash flows from a proposed investment. The time period ranges from 0 to 10 years. The cash flow in Period 0 is minus~la dollars. The future value in Period 10 is to be determined. Time Period012times times times910 years Cash Flownegative $ 5,200nothingnothingnothingnothingFuture Value equals question mark Part 2 STEP 2:Decide on a solution strategy This is a simple future value problem with a single cash flow. We know the present value, interest rate, and number of years; we are looking for the future value. We can find the future value using a mathematical formula, a financial calculator, or an Excel spreadsheet. Part 3 What is the present value or original amount invested, PV? $ 5200(Type a whole number.) Part 4 What is the annual interest (or discount) rate, i? 10% (Type a whole percentage.) Part 5 What is the number of years during which the compounding occurs, n? 10 years(Type a whole number.) Part 6 To what amount will $5 comma 200 invested for 10 years at 10 percent compounded annually accumulate? $ enter your response here(Round to the nearest cent.)
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