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    Calculating present/ future value of given cash flows

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    1. Calculate the future value of 1,535 invested today for 8 years at 6 percent.

    2. What is the total present value of the following cash stream, discounted at 8 percent?

    Year Amount
    1 400
    2 750
    3 945
    4 145
    5 78

    3. If you invested $2,000 per year into an IRA for 30 years and received 6 percent return each year, what would the account balance be in 30 years?

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    Please refer attached file for missing formulas. Formulas typed with the help of equation writer are missing here.

    1.Calculate the future value of 1,535 invested today for 8 years at 6 percent.

    Present Value of cash flow (PV)=$1535
    Number of periods=n=8 years
    Return=i=6%
    FV of single cash flow=PV*(1+i)^n
    FV=1535*(1+6%)^8=$2446.56

    Future value of 1,535 invested today for 8 years at 6 percent will be $2446.56

    2.What ...

    Solution Summary

    Solution describes the steps to calculate present and future value of cash flows.

    $2.19

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