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What is the seven-year future value? The units of your answer should be 'billion dollars'. Input your answer to three decimal places.

What is the seven-year future value? The units of your answer should be 'billion dollars'. Input your answer to three decimal places.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Company Z showed a profit of $1.5 billion last year. The CEO of the company expects the profit to increase by 0.25 billion dollars per year over the next seven years and the profits will be continuously invested in an account bearing a 6.1% APR compounded continuously. What is the seven-year future value? The units of your answer should be 'billion dollars'. Input your answer to three decimal places.
Transcribed Image Text:Company Z showed a profit of $1.5 billion last year. The CEO of the company expects the profit to increase by 0.25 billion dollars per year over the next seven years and the profits will be continuously invested in an account bearing a 6.1% APR compounded continuously. What is the seven-year future value? The units of your answer should be 'billion dollars'. Input your answer to three decimal places.
A company expects profits of $40,000 per year for 3 years. If the profits will be continuously invested in an account bearing 5.4% APR compounded continuously, what is the three-year future value of this income stream? $130,266.85 $110,784.29 $120,000.00 $102,052.94 $47.034.41
Transcribed Image Text:A company expects profits of $40,000 per year for 3 years. If the profits will be continuously invested in an account bearing 5.4% APR compounded continuously, what is the three-year future value of this income stream? $130,266.85 $110,784.29 $120,000.00 $102,052.94 $47.034.41
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