Mr. Zigong wishes to know about the future values of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compounded annually at the rate specified over some specific period. For example, the situation for the first case is that single cash flow is 200$, interest rate is 5%, and deposit period is 20 years. Under second case, single cash flow is 4500$, interest rate is 8%, and deposit period is 7 years. Whereas under third case, single cash flow is 10,000$, interest rate is 9%, and deposit period is 10 years. In addition, under fourth case, single cash flow is 25,000$, interest rate is 10%, and deposit period is 12 years. Besides, under last case, single cash flow is 37000$, interest rate is 11%, and deposit period is 5 years, respectively.

Mr. Zigong wishes to know about the future values of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compounded annually at the rate specified over some specific period. For example, the situation for the first case is that single cash flow is 200$, interest rate is 5%, and deposit period is 20 years. Under second case, single cash flow is 4500$, interest rate is 8%, and deposit period is 7 years. Whereas under third case, single cash flow is 10,000$, interest rate is 9%, and deposit period is 10 years. In addition, under fourth case, single cash flow is 25,000$, interest rate is 10%, and deposit period is 12 years. Besides, under last case, single cash flow is 37000$, interest rate is 11%, and deposit period is 5 years, respectively.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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