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Compound Interest and NPV

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3 short calculations

1. Johnny deposited $2,000 in a bank account that pays 12% interest annually.
What will the dollar amount be in four years?

2. If Johnny wants to have $1,700 in seven years, how much money must you put in a savings account today? Assume that the savings account pays 6% and it is compounded quarterly (round to the nearest $10).

3. Johnny's company can purchase a new assembler for $15,052 that will provide an annual net cash flow of $6,000 per year for five years. Calculate the NPV of the assembler if the required rate of return is 12%. (Round your answer to the nearest $1.)

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1. Johnny deposited $2,000 in a bank account that pays 12% interest annually.
What will the dollar amount be in four ...

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