Concepts of future value and annuities
Problem:
Explain the concept of the time value of money. You will need to include and define/explain the concepts of "future value", annuities, present value, cash flows, compound interest and opportunity cost in your answer.
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If a 7 percent interest rate is applied, what is the current value of the future payments.
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$25,000.00 for 15 years compounded at 10% quarterly results in a periodic interest rate of:
Explain the concepts of "future value", annuities, present value, cash flows, compound interest and opportunity cost in your answer.
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