3) What is the future value at the end of year 20 of a series of 16 deposits? The first depositoccurs at the end of year 5 and is $800. The remaining deposits increase by $150/year (so the lastdeposit will be $3,050 and will occur at the end of year 20). Assume i = 9% annual ratecompounded annually.Answer4) Your business is expected to generate a $40,000 profit at the end of year 1, and profit willincrease by 7% per year through year 10. If you can earn 10% annual interest compoundedannually, what is the present value of all your profits over the next 10 years?Answer

What is the future value at the end of year 20 of a series of 16 deposits? The first deposit curs at the end of year 5 and is $800. The remaining deposits increase by $150/year (so the last posit will be $3,050 and will occur at the end of year 20). Assume i = 9% annual rate mpounded annually.

What is the future value at the end of year 20 of a series of 16 deposits? The first deposit curs at the end of year 5 and is $800. The remaining deposits increase by $150/year (so the last posit will be $3,050 and will occur at the end of year 20). Assume i = 9% annual rate mpounded annually.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Question

3) What is the future value at the end of year 20 of a series of 16 deposits? The first deposit
occurs at the end of year 5 and is $800. The remaining deposits increase by $150/year (so the last
deposit will be $3,050 and will occur at the end of year 20). Assume i = 9% annual rate
compounded annually.
Answer
4) Your business is expected to generate a $40,000 profit at the end of year 1, and profit will
increase by 7% per year through year 10. If you can earn 10% annual interest compounded
annually, what is the present value of all your profits over the next 10 years?
Answer

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