An investment will pay $150 at the end of each of the next 3 years, $250 at the end of year 4, $300 at the end of year 5, and $600 at the end of year 6. if other investments of equal risk earn 12% annually, what is its present value? its future value? do not round intermediate calculations. round your answers to the nearest cent.

Year     Cashflow       [email protected]%       PV

                 $                                      $

1               150             0.8929       134

2              150             0.7972        120

3              150             0.7118          107

4              250            0.6355        159

5              300            0.5674        170                                                                                   6              600            0.5066       304                                                                                                                                                                                                                                          

                                                      994

Explanation:

In this case, we will discount the cashflow for each year at 12% per annum.  The discount factor can be obtained by using the formula (1 + r)-n. Then, we will multiply the cashflows by the discount factors in order to obtain the present values. All the present values will be added up.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; importance to people; or acceptance;