You deposit $1,000 today, $3,000 two years from now, and $5,000 five years from now. How much money will you have at the end of year 5 if the annual compound interest rates for each year are predicted to be different and shown in the table below. Draw the cash flow diagram to illustrate your results. Year 1 2 3 4 5 Interest rate 5% 10% 15% 15% 17%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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You deposit $1,000 today, $3,000 two years from now, and $5,000 five years from now.
How much money will you have at the end of year 5 if the annual compound interest
rates for each year are predicted to be different and shown in the table below. Draw the
cash flow diagram to illustrate your results.
Year Interest rate
1
5%
IT
2
10%
3
15%
4
15%
5
17%
Transcribed Image Text:You deposit $1,000 today, $3,000 two years from now, and $5,000 five years from now. How much money will you have at the end of year 5 if the annual compound interest rates for each year are predicted to be different and shown in the table below. Draw the cash flow diagram to illustrate your results. Year Interest rate 1 5% IT 2 10% 3 15% 4 15% 5 17%
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