Consider the following cash flows:
Year Cash Flow 2 $ 22,900 3 40,900 5 58,900
Assume an interest rate of 9.7 percent per year.
Requirement 1: If today is Year 0, what is the future value of the cash flows five years from now? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Future value $
Requirement 2: If today is Year 0, what is the future value of the cash flows ten years from now? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Future value $
| Consider the following cash flows: |
| Year | Cash Flow | |||
| 2 | $ | 22,900 | ||
| 3 | 40,900 | |||
| 5 | 58,900 | |||
| Assume an interest rate of 9.7 percent per year. |
| Requirement 1: |
| If today is Year 0, what is the future value of the cash flows five years from now? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Future value | $ |
| Requirement 2: |
| If today is Year 0, what is the future value of the cash flows ten years from now? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Future value | $ |
Related questions
| Requirement 1: | |
| At 8.75 percent interest, how long does it take to double your money? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Length of time | years |
| Requirement 2: | |
| At 8.75 percent interest, how long does it take to quadruple your money? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Length of time | years |
You want to buy a new sports coupe for $74,400, and the finance office at the dealership has quoted you a loan with an APR of 6.8 percent for 48 months to buy the car.
| Requirement 1: |
| What will your monthly payments be? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Requirement 2: |
| What is the effective annual rate on this loan? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
