# Finance Homework

*label*Mathematics

*timer*Asked: Jan 21st, 2019

*account_balance_wallet*$15

### Question Description

Need help with finance. There're 10 questions in the attached file. Please show work as to how you got the final answers. Provide clear explanation that's easy to understand.

## Tutor Answer

Attached.

Q1 Cullumber, Inc., management expects the company to earn cash flows of $13,300, $16,300, $19,000,

and $19,500 over the next four years. If the company uses a 6 percent discount rate, what is the future

value of these cash flows at the end of year 4? (Round answer to 2 decimal places, e.g. 15.25. Do not

round factor values.)

Future Value =$73,795.19

Future value = 13,300(1.06)3 + 16,300(1.06)2 + 19,000(1.06)1 + 19,500

Future value = $73,795.19

Q2 Jason Allen borrowed some money from his friend and promised to repay him $1,230, $1,330,

$1,550, $1,620, and $1,620 over the next five years. If the friend normally discounts investment cash

flows at 7.5 percent annually, how much did Jason borrow? (Round answer to 2 decimal places, e.g.

15.25. Do not round factor values.)

Present Value =$5,884.25

Present value = 1,230(1.075)-1 + 1,330(1.075)-2 + 1,550(1.075)-3 + 1,620(1.075)-4 + 1,620(1.075)-5Present value =$5,884.25

Q3 Barbara Jones is a sales executive at a Baltimore firm. She is 25 years old and plans to

invest $4,100every year in an IRA account, beginning at the end of this year until she reaches the age of

65. If the IRA investment will earn 11.90 percent annually, how much will she have in 40 years, when she

turns ...

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