1)What is the future value in SEVEN years if you receive $300 in two years and $500 at the end of five years? Assume an annual compound rate of 8.5%. 2) What is the value of $2000after one year, if bank compounding half yearly and offered rate is 10%? 3) What is the value of $2000 after one year if bank compounding quarterly and offered rate is 10%?
1)What is the future value in SEVEN years if you receive $300 in two years and $500 at the end of five years? Assume an annual compound rate of 8.5%. 2) What is the value of $2000after one year, if bank compounding half yearly and offered rate is 10%? 3) What is the value of $2000 after one year if bank compounding quarterly and offered rate is 10%?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 31P
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1)What is the future value in SEVEN years if you receive $300 in two years and $500 at the end of five years? Assume an annual compound rate of 8.5%.
2) What is the value of $2000after one year, if bank compounding half yearly and offered rate is 10%?
3) What is the value of $2000 after one year if bank compounding quarterly and offered rate is 10%?
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