solve it plz For the flowing Cashflows : Year 0 Option1 1000.00 Option 2 1000.00

Question

solve it plz

For the flowing Cashflows : Year 0 Option1 1000.00 Option 2 1000.00 For the flowing Cashflows : Year Option 1 Option 2 For the flowing Cashflows : Year Option 1 Option 2 0 1000.00 1000.00 1 50.00 0 1000.00 1000.00 1 50.00 2 75.00 1 50.00 2 75.00 3 -1243.00 -1145.00 2 75.00 3 -1243.00 -1145.00 3 -1243.00 -1145.00 Total -118.00 -145.00 Total -118.00 -145.00 Total -118.00 -145.00 Find the total Interest for Option 2 Determine the Future Value of Option 1 at a compound interest rate of 10% Determine the Future Value of Option 2 at a compound interest rate of 10% Select one: Select one: a. 1145 Select one: a. 231 b. c a 2145 b. -1243 c. 186 b. 145 c. 60.50 d. 1331 0 c.118 d. 82.50 d. 1145

Explanation / Answer

1. Total Interest = 1145 -1000 = $ 145

2. future Value of Option 1 :

= (-1243) + 1000(1+0.10)^3 + 50*(1.10)^2 + 75*(1.10) = $ -1243 +1331 + 60.5 + 82.5 = $ 231

3. Future Value Of option 2:

= 1000*(1+0.10)^3 + (-1145) = 1331 -1145 = $ 186

Thankyou :)

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