Question: This problem has three parts: a.) What is the future value (FV) at the end of Year 5 if $150,000 is deposited today into an
This problem has three parts:
a.) What is the future value (FV) at the end of Year 5 if $150,000 is deposited today into an account which pays 12% compounded annually?
b.) Next, what is the future value (FV) at the end of Year 5 if $150,000 is deposited today into an account which pays 12% compounded quarterly?
c.) Find the present value (PV) of a $75,000 cash flow to be received 4 years from today, if the interest rate (or APR) is 7.5% compounded annually.
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