The future value in two years of $8,500 invested today in a certificate of deposit...
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Accounting
The future value in two years of $8,500 invested today in a certificate of deposit with interest compounded annually at 10 percent. $_______
b. The present value of $10,000 to be received in five years, discounted at 8 percent. $_______
c. The present value of an annuity of $23,500 per year for four years discounted at 12 percent. $_______
d. An initial investment of $45,220 is to be returned in six equal annual payments. Determine the amount of each payment if the interest rate is 16 percent. $ _______
e. A proposed investment will provide cash flows of $10,000, $13,000 and $11,000 at the end of Years 1, 2, and 3, respectively. Using a discount rate of 16 percent, determine the present value of these cash flows.
Present Value
Year 1 $_______
Year 2 $_______
Year 3 $_______
Total $_______
f. Find the present value of an investment that will pay $10,000 at the end of Years 8, 9, and 10. Use a discount rate of 12 percent. $_____
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