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Q1: If the discount interest rate is 8%, the future value of a stream of cash...

Q1:

If the discount interest rate is 8%, the future value of a stream of cash flows of $500 deposited into an account at the end of each of the next 40 years, is closest to?

a. $23

b. $5,962

c. $6,439

d. $20,000

e. $129,528

Q2:

If the discount interest rate is 8%, the present value of a stream of cash flows of $500 paid at the beginning of each of the next 40 years, is closest to?

a. $23

b. $5,962

c. $6,439

d. $20,000

e. $129,528

Q3:

If the discount interest rate is 8%, the present value of a stream of cash flows of $500 paid at the end of each year for the next 40 years, is closest to?

Select one:

a. $23

b. $5,962

c. $6,439

d. $20,0000

e. $129,528

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Homework Answers

Answer #1

Question 1. Future value = $129528

Question 2. Present value = $ 6439

Question 3. Present value = $ 5962

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