question archive Now, you are planning to deposit $500 at the beginning of each year for the next three years
Now, you are planning to deposit $500 at the beginning of each year for the next three years
Subject:BusinessPrice: Bought3
Now, you are planning to deposit $500 at the beginning of each year for the next three years. Two years later since the last deposit, you are planning to deposit $1,000 at the EOY. Given these deposits and considering an interest rate of 7%, answer the following questions: 1. Construct the cash-flow of these deposits (2.5 marks). 2. Calculate the equivalent future value of these deposits if you want to receive the deposited money as a lump sum six years from now (2.5 marks).
