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BUS 3062 Capella University Estimation of the Future Value of Investment Questions

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  1. In addition to your solution to each computational problem, you must
    show the supporting work leading to your solution to receive credit for
    your answer.
  2. If interest rates are 8 percent, what is the future value of a
    $400 annuity payment over six years? Unless otherwise directed, assume
    annual compounding periods.

    • Recalculate the future value at 6 percent interest and 9 percent interest.
  3. If interest rates are 5 percent, what is the present value of a
    $900 annuity payment over three years? Unless otherwise directed, assume
    annual compounding periods.

    • Recalculate the present value at 10 percent interest and 13 percent interest.
  4. What is the present value of a series of $1150 payments made every year for 14 years when the discount rate is 9 percent?
    • Recalculate the present value using discount rate of 11 percent and 12 percent.

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