Question 1.
Determine the future worth in year 10 of a cash flow series thatstarts in year 0 (today) at $25,000 and decreases by 6% per year(through year 10). Use an interest rate of 6%.
Question 2.
Person opens a savings account today. In year1, she deposited $5,000. She made no deposits in year 2 and 3 andthen deposit $2,000 each for years 4 trough 6. Given an interestrate of 4%, how much would she have needed to deposit each year ifshe made expial payments in years 1 through 6 to have the sameamount in the account at the end of year 6?
