12. BUSINESS EXPANSION Village Hardware expands its business at a cost of S20,000. They expect that the investment will grow at a rate of 10% per year compounded annually for the next 4 years. (a) Find the future value of the investment. (b) lind the present value of the amount found in part (a) at a rate of 6% compounded annually. Round to the near- est dollar at each step.
12. BUSINESS EXPANSION Village Hardware expands its business at a cost of S20,000. They expect that the investment will grow at a rate of 10% per year compounded annually for the next 4 years. (a) Find the future value of the investment. (b) lind the present value of the amount found in part (a) at a rate of 6% compounded annually. Round to the near- est dollar at each step.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:12. BUSINESS EXPANSION Village Hardware expands its business at a cost of $20,000
They expect that the investment will grow at a rate of 10% per year eompounded annually
for the next 4 years. (a) Find the future value of the investment. (b) lind the present value
of the amount found in part (a) at a rate of 6% compounded annually. Round to the near-
est dollar at euch step.
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