state.instructure.com/courses/25110/quizzes/53592/take O True O False Question 2

Question

state.instructure.com/courses/25110/quizzes/53592/take O True O False Question 20 7 pts At a rate of 7%, what is the future value of the following cash flow stream? $0 at Time 0; $100 at the end of Year 1; $300 at the end of Year 2: $0 at the end of Year 3; and $500 at the end of Year 4? O $717 $737 O $976 $966 Question 21 7 pts You want to buy a new sports car 4 years from now, and-you plan to save $4.200 per ycar, beginning one year from today. You will deposit your savings in an account that pays 4.2% interest. How much will you have just after you make the 4th deposit, 4 years from now? $17.888

Explanation / Answer

100 ( 1 + 0.07)3 = 122.504

300 ( 1 + 0.07)2 = 343.47

500 ( 1 + 0.07)0 = 500

500 + 343.47 + 122.504 = 966

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