Terri Chichester_unit8_project

Terri Chichester_unit8_project - Terri Chichester AC 300-03...

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Terri Chichester AC 300-03 Professor Day Unit 8, project PM-1 Future value of an investment 1. What is the future value on December 31, 2014 of a deposit of $35,000 made on December 31, 2010, assuming interest of 10% compounded annually? FV = $35,000(1.464100) = $51,243.50 2. What is the future value on December 31, 2014 of a deposit of $10,000 made on December 31, 2010, assuming interest of 16% compounded quarterly? FV = $10,000(1.872981) =$18,729.81 3. What is the future value on December 31, 2014 of a deposit of $25,000 made on December 31, 2010, assuming interest of 12% compounded semiannually? FV = $25,000(1.593848) = $39,846.20 PM-3 Future value issues 1. What is the future value on December 31 2019 of 10 cash flows of $20,000 with the first cash payment made on December 31, 2010 and interest at 10% being compounded annually? FV = $20,000(15.937425) = $318748.50 2. What is the future value on June 30, 2020 of 20 cash flows of $15,000 with the first cash payment made on December 31, 2010 and the annual interest rate of 10%
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