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Future Value of Uneven Cash Flows

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One year ago, the Beauty Skins Bhd deposited $3,600 in an investment account for the purpose of buying new equipment four years from today. Today, it is adding another $5,000 to this account. It plans to make a final deposit of $7,500 to the account next year. How much will be available when it is ready to buy the equipment, assuming it earns a 7% rate of return?

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Solution Summary

This solution provides a detailed step-by-step solution for the calculation of the future value of a deposit, taking into account the number of years, the interest rate of return, and the present value of the deposit. The calculation is accompanied by an explanation of the terms and the process.

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Future Value of Uneven Cash Flows

One year ago, the Beauty Skins Bhd deposited $3,600 in an investment account for the purpose of buying new equipment four years from today. Today, it is adding another $5,000 to this account. It plans to make a final deposit of $7,500 to the account next year. How much will be available when it is ready ...

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