Ch7 - 7.1Calculatethefollowingfuturevalues:

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7.1  Calculate the following future values: 1. $10,000 (at time 0) compounded annually for 5 years at 8%. 2. $50,000 (at time 0) compounded annually for 10 years at 10%. 3. $500 per year (beginning at the end of the first year) for 6 years compounded annually at 6%. 4. $1,500 per year (beginning at the end of the first year) for 12 years compounded at 12%  annually. 7.2  Find the present value of the following: 1. $5,000 received 8 years from now discounted at 8%. 2. $10,000 received 5 years from now discounted at 6%. 3. $8,000 per year (beginning at the end of the first year) for 4 years discounted at 12%. 4. $4,000 per year (beginning at the end of the first year) for 6 years discounted at 10%. 5. $4,000 per year (beginning at the end of the first year) for 3 years followed by $3,000 per  year for 5 years, all discounted at 8%. 7.3 Which amount is worth more today at discount rate of 8%? Show your work.
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This note was uploaded on 09/10/2010 for the course IAH 001 taught by Professor Wang during the Spring '10 term at Michigan State University.

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Ch7 - 7.1Calculatethefollowingfuturevalues:

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