Cash flow for the combinations of rates and times

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1. An investor earned an arithmetic average return over 4 years of 13.1%. The first year’s return was 13.6%, the second year’s return was -3.80%, the third year’s return was 23.8%. What was the fourth year’s return?

a) 20.94%

b) 13.10%

c) 21.75%

d) 18.80%

2. Compute the future value of a $105 cash flow for the following combinations of rates and times. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a. r = 8%; t = 10 years

b. r = 8%; t = 20 years

c. r = 4%; t = 10 years

d. r = 4%; t = 20 years

Reference no: EM131995549

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