B-24.05 Problem

# B-24.05 Problem - (a) An investment of \$1,000 for 10 years,...

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B-24.05 Below are four independent scenarios relating to the investment of a single lump-sum amount. Calculate the future value of each, using the algebraic formula illustrated in the textbook. Then, verify your answer by reference to the "future value of \$1" table. If you have a "business" calculator, additionally verify your calculations using the future value functions included with your calculator.
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Unformatted text preview: (a) An investment of \$1,000 for 10 years, at a 5% annual rate, compounded annually. (b) An investment of \$5,000 for 2 years, at a 6% annual rate, compounded monthly. (c) An investment of \$2,500 for 3 years, at a 10% annual rate, compounded semi-annually. (d) An investment of \$7,500 for 5 years, at a 8% annual rate, compounded quarterly....
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## This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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