What is present value of series of two future payments

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Reference no: EM131955376

1. Suppose you invest $1000.00 in an account that pays 8.00% interest, compounded annually. If you make no additional deposits or withdrawals to or from your account, how much will be in your account after 5.5 years?

2. What is the present value of $1800.00 that will be received 8.5 years from now? Assume an interest rate of 11.00%, compounded annually.

3. How much should you invest today at an interest rate of 11.00%, compounded annually, in order to have $12,000.00 8.0 years from now?

4. What is the present value of a series of two future payments: the first payment of $600.00 is received 7.0 years from now and the second payment of $650.00 is received 9.00 years from now? Assume an interest rate of 8.00%, compounded annually.

Reference no: EM131955376

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