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a) What is the future value of $525 deposited for one year earning an 8 percent interest rate annually?
b) How much would be in your savings account in 8 years after depositing $300 today if the bank pays 8 percent per year? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
c) A deposit of $420 earns the following interest rates:
a. 9 percent in the first year.
b. 7 percent in the second year.
c. 6 percent in the third year.
What would be the third year future value?
d) What is the present value of a $380 payment in one year when the discount rate is 8 percent? (Round your answer to 2 decimal places.)
e) What is the present value of a $1,400 payment made in six years when the discount rate is 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
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Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.
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