Find the future value at the end of eight years

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#Time value of money#

Solve each of the following problems and say which one is present value or future value problems.

1) Assume an annual rate of return of 12%. The sum of $10000 received immediately is equivalent to what amount to be received in ten equal annual payments if ; (a) the first payment is to be received one year from now.What could be the annual amount if ;(B) the first payment were received immediately?

2) Find the future value at the end of eight years of a deposit of $18,000 at the end of the first four years and a withdrawal of $12000 per year at the end of years five through seven.

Reference no: EM132154651

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