Homework Help is Here – Start Your Trial Now!
Business
Finance
What is the future value at the end of year 20 of a series of 16 deposits? The first deposit curs at the end of year 5 and is $800. The remaining deposits increase by $150/year (so the last posit will be $3,050 and will occur at the end of year 20). Assume i = 9% annual rate mpounded annually.

What is the future value at the end of year 20 of a series of 16 deposits? The first deposit curs at the end of year 5 and is $800. The remaining deposits increase by $150/year (so the last posit will be $3,050 and will occur at the end of year 20). Assume i = 9% annual rate mpounded annually.

Essentials Of Investments
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
Problem 1PS
See similar textbooks
icon
Related questions
Question
3) What is the future value at the end of year 20 of a series of 16 deposits? The first deposit occurs at the end of year 5 and is $800. The remaining deposits increase by $150/year (so the last deposit will be $3,050 and will occur at the end of year 20). Assume i = 9% annual rate compounded annually. Answer 4) Your business is expected to generate a $40,000 profit at the end of year 1, and profit will increase by 7% per year through year 10. If you can earn 10% annual interest compounded annually, what is the present value of all your profits over the next 10 years? Answer
Transcribed Image Text:3) What is the future value at the end of year 20 of a series of 16 deposits? The first deposit occurs at the end of year 5 and is $800. The remaining deposits increase by $150/year (so the last deposit will be $3,050 and will occur at the end of year 20). Assume i = 9% annual rate compounded annually. Answer 4) Your business is expected to generate a $40,000 profit at the end of year 1, and profit will increase by 7% per year through year 10. If you can earn 10% annual interest compounded annually, what is the present value of all your profits over the next 10 years? Answer
Expert Solution
steps

Step by step

Solved in 4 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS