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1. Future Value. what is the future value in six yearsof $1000 invested in an account with a stated annual interest rateof 9 percenta. compounded annually?b. compounded semi annually?c. compounded monthly?d. compounded continuously?e. why does the future value increase as the compounding periodshortens?Q2. present value and break even interest. consider afirm with a contract to sell an asset for $115,000 three years fromnow. The asset cost $76,000 to produce today. Given a relevantdiscount rate on this asset of 13 percent per year, will the firmmake a profit on this asset? at what rate does the firm just breakeven?
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