WK$3$ Submission: Time Value Exercise

Read Chapter $5$ in the textbook by Gitman & Zutter.

Work through the problem: P$5-4$ on pp$.193-196.$

Support your arguments using the quantitative analysis, but also include qualitative arguments for your position.

P$5-4$ Future values For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today at the end of the deposit period if the interest is compounded annually at the rate specified.

Case Single cash flow Interest rate Deposit period $($years$)$

A $ $2005\%20$

B $4,50087$

C $10,000910$

D $25,0001012$

E $37,000115$

F $40,000129$