Compute the future value of annual payments

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Reference no: EM133265591

Question: Compute the future value of annual payments of $1,000, paid for 4 years, using an interest rate of 3% (compounded). Equation 4.17: FVn=CF1×(1+r)N-1+CF2×(1+r)N-2+...CFn

Write out each step you used to solve the problem you were assigned, and provide the solution to the problem as well.
Present your final solution as a decimal approximation carried out to the second decimal point (e.g., $000.00).
Explain the meaning of the problem and your solution in your own words.
Explain your answers to the following questions:
If the rate in the problem was higher, would the solution be higher or lower?
If the time period in the problem was shorter, would the solution be higher or lower?
Describe an element of this problem that was challenging to you.
Ask at least one question about time value of money mathematics.

Reference no: EM133265591

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