How much money would be in a savings count

Reference no: EM13928085

1. How much money would be in a savings count that started with a deposit of $2,000 in year 1 with each succeeding amount increasing by 10% per year? Use an interest rate of 15% per year and a 7-year period.

2. You are a college student making yearly payment for your loan starting from now. For the first three years, you pay $2,500 a year. Year 4 to 6, your parents help you with the payment so you pay $1,500 per year, and finally year 7 you pay $2,500. Determine the value in year 8 that is equivalent to the cash flow stated above. Use an interest rate of 12%.

3. Calculate the present worth in year 0 of the following series of disbursements. Assume that i= 10% per year.

Year	Disbursements, $		Disbursements, $
0	0	6	5,000
1	3,500	7	5,000
2	3,500	8	5,000
3	3,500	9	5,000
4	5,000	10	5,000
5	5,000

Reference no: EM13928085

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