e https//newconnect.mheducation.com/flow/connect.html Problem 2-11 (LO2.4) Use f
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e https//newconnect.mheducation.com/flow/connect.html Problem 2-11 (LO2.4) Use future value and precenit value calcula a. The future tons (Use Exhibit 1A Exhibit 1-8 Exhlbit 1-0 to determine the following value of a savings depost of $600 after elght years at an annual interest rate of 6 percent (Round FV factor to 3 decimal places and final answer to 2 decimal placesj b. The future value of saving $1,800 a year for five years at an annual Interest rate of 5 percent. t places and final answer to 2 declmal places.) years at an annual Interest rate of 5 percent (Round FVA factor to 2 decima account that will earn 3 percent annual Interest and be worth $2,000 at the end of four years Round PV factor to 3 dectmal places and final answer to nearest whole dollar.) value NextExplanation / Answer
a
You need to find the Future Value of $ 600 at year 8 @6%
=600*(1+.06)^8
=600*1.594
=956.40
b
You need to find the future value of annuity of $ 1800 at year 5 @5%
1800*((1+0.05)^5-1)/0.05
1800*5.526
=9946.80
c
You need to find the Present Value of $ 2000 at year 4 @3%
2000*1/(1+.03)^4
2000*.885=$1770
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