Question

Compute the future value of a $140 cash flow for the following
combinations of rates and times. **(Do not round intermediate
calculations. Round your answers to 2 decimal places.)**

**a.** *r* = 8%; *t* = 10 years

**b.** *r* = 8%; *t* = 20 years

**c.** *r* = 4%; *t* = 10 years

**d.** *r* = 4%; *t* = 20 years

Answer #1

**(a)** Initial Value = $ 140, Interest Rate = 8 %
and Time = 10 years

Future Value = 140 x (1.08)^(10) = $ 302.25 approximately.

**(b)**

Initial Value = $ 140, Interest Rate = 8 % and Time = 20 years

Future Value = 140 x (1.08)^(20) = $ 652.53 approximately.

**(c)**

Initial Value = $ 140, Interest Rate = 4 % and Time = 10 years

Future Value = 140 x (1.04)^(10) = $ 207.23 approximately.

**(d)**

Initial Value = $ 140, Interest Rate = 4 % and Time = 20 years

Future Value = 140 x (1.04)^(20) = $ 306.76 approximately.

Compute the future value of a $100 annual annuity for the same
combination of rates and time periods as in problem 1.
(Round your answers to the nearest cent. Round FVA factors
to 4 decimal places.)
a.
r = 8%, t = 10 years
FV of annuity
$
b.
r = 8%, t = 20 years
FV of annuity
$
c.
r = 4%, t = 10 years
FV of annuity
$
d.
r = 4%, t = 20 years...

a. Compute the future value of $1,900
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8 percent. (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)
Future value
$
b. Compute the future value of $1,900 continuously
compounded for 5 years at an annual percentage rate of 11 percent.
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
Future value
$
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Compute the future value of $1,000 compounded annually for 20
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and round your answer to 2 decimal places, e.g.,
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Future value
$
b.
Compute the future value of $1,000 compounded annually for 15
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$
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Find the interest rate implied by the following combinations of
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places. Leave no cells blank - be certain to enter "0" wherever
required.)
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Future Value
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$340
12
611
%
153
5
225
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240
8
240
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round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.) b. Compute the future value of $1,900
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Fuente, Inc., has identified an investment project with the
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Cash Flow
1
$1070
2
$1300
3
$1520
4
$2260
a.
If the discount rate is 8 percent, what is the future value of
these cash flows in Year 4? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
b.
If the discount rate is 11 percent, what is the future value of
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rounded numbers in intermediate calculations. Round your answers to
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Future Value
Interest Rate
Years
$
$
25,250
9
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8
$
1,070,000
11
37
$
904,000
12
23
$
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8
12

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Cash Flow
2
$
21,200
3
39,200
5
57,200
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round your answer to 2 decimal places, e.g., 32.16.)
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$
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Interest Rate
$
$
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6
10
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28,600
8
8
149,000
13
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17
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9
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6
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19
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