Business Ethics & Financial management

Question 1

Future value of single sum problem

You put $2,000 in an investment account today which will earn 8% over the next 14 years, what is the future value?

Question 2

Present value of annuity problem

You will receive $1,200 at the end of the next 15 years, assuming a 8% discount rate, what is the present value of the cash flows?

Question 3

· Perpetuity problem

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What is the value of a perpetuity with an annual payment of $100 and a discount rate of 6%?

Question 4

· Future value of annuity problem

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You deposit $5,000 into a retirement account at the end of the next 15 years earning 8% interest, what is the future value of your retirement after 15 years?

Question 5

· Perpetuity problem

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· What is the value of a perpetuity with an annual payment of $50 and a discount rate of 4%?