3. Present and future values of a cash flow stream An investment will pay $150 a

Question

3. Present and future values of a cash flow stream
An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $400 at the end of Year 5, and $550 at the end of Year 6.
a.If other investments of equal risk earn 11% annually, what is its present value? Round your answer to the nearest cent.

b.Its future value? Round your answer to the nearest cent.

4.a.An initial $300 compounded for 2 years at 3%.

b.The present value of $300 due in 1 year at a discount rate of 3%.

c.The present value of $300 due in 2 years at a discount rate of 3%.

5.Find the following values. Compounding/discounting occurs annually. Round your answers to the nearest cent.
a.An initial $400 compounded for 10 years at 4%.

b.An initial $400 compounded for 10 years at 8%.

c.The present value of $400 due in 10 year at a discount rate of 4%.

d.The present value of $1,640 due in 10 years at 8%.

e.The present value of $1,640 due in 10 years at 4%.

Explanation / Answer

Here are a few suggestions to ensure your question gets answered: 1. Each post should only contain a single question. 2. Multi-part questions based on the same "given" information MUST be posted separately. 3. Any question requiring individual calculations is considered to be an additional question. 4. Posts containing multiple questions are "flagged" in our system and rarely receive an answer. 5. Questions which require a significant time commitment to answer are more likely to expire without being answered. -This often includes lengthy word problems or questions relating to software code. So kindly follow these if you want your account not to get frozen.

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.