What is the present value of the cash flows

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Reference no: EM131842363

1. You are to make monthly deposits of $500 into a retirement account that pays an APR of 9.8 percent compounded monthly. If your first deposit will be made one month from now, how larger will your retirement account be in 35 years?

2. If the appropriate discount rate for the following cash flows is 7.13 percent per year, what is the present value of the cash flows?

Year Cash Flow

1 $1,200

2 $1,900

3 $3,400

4 $4,300

Reference no: EM131842363

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