1. What is the future value of 53,748 deposited today at the end of 14 years, as

Question

1. What is the future value of 53,748 deposited today at the end of 14 years, assuming the rate of interest is 0.7 percent, using simple rate of interest?

A) 59005.30

B) 59015.30

C) 59025.30

D)59035.30

E) None of the Above

2. XKL Co. plans a new project that will generate $ 187,000 of continuous cash flow each year for 8 years and additionally $108,000 at the end of the project. If the continuously compunded rate of interest is 4%, estimate the present value of the cash flows.

A) 1197567.12

B) 1271062.87

C) 1333242.98

D) 1358677.35

E) None of the above

Explanation / Answer

1)

Future value:

= $53,748×(1+0.7%×14)

= $59,015.30 (B)

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