Unit 6: Lesson 2: LS Assignment 2

What is the future value of $100 deposited each year for 2 years beginning next year, then $200 deposited for the next two years if you can earn 6% per year?

$643.46

Which of the following processes can be used to calculate the future value of multiple cash flows?

calculate the future value ion each cash flow first then add them up compound the accumulated balance forward one year at a time

In almost all multiple cash flow calculations, it is implicitly assumed that the cash flows occur at the _____ of each period.

end

When finding the percent or future value of an annuity using a financial calculator, the ________ should be entered as a percentage.

interest rate

Suppose you expect to receive $5,000 in one year =, $4,300 more in two years, and an additional $5,000 in three years. Match each present value amount to the corresponding cash flow assuming a discount rate of 17%.

present value of the year 1 cash flow -> $4,273.50=$5,000/1.17 year 2 cash flow--> $3,141.21=$4,300/(1.17^2) year 3 cash flow --> $3,121.85=$5,000/(1.17^3)