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Finance Exam 2 – Practice Questions &
Answers Study Guide (2026 Updated)
Finance Exam 2 – Practice Questions
Finance&Exam
Answers
2 –
Study
Practice
GuideQuestions
(2026
Finance
Updated).pdf
&Exam
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2 –
Study
Practice
GuideQuestions
(2026 Updated).pdf
& Answers Study Guide (2026 Updated).pdf
,Finance Exam 2.pdf Finance Exam 2.pdf Finance Exam 2.pdf
how to discount a cash flow
you can find the value of a set of cash flows at any point in time--get the value of
each cash flow at that point in time and add them up
put in N, interest, and then PV
then
Finance Exam 2.pdf Finance Exam 2.pdf Finance Exam 2.pdf
, Finance Exam 2.pdf Finance Exam 2.pdf Finance Exam 2.pdf
You think you will be able to deposit $4,000 at the end of each of the next three years in a
bank account paying 8 percent interest. You currently have $7,000 in the account. How much
will you have in three years? In four years?
this is for discounting cash flow
0 CF; 3 N; 8 I/yr; -7000 PV; CPT FV 8817.98
1 CF; 2 N; 8 I/yr; -4000 PV; CPT FV 4465.60
2 CF; 1 N; 8 I/yr; -4000 PV; CPT FV 4320
3 CF; CPT FV 4,000
total value in 3 years (add them all up) = 21, 803.58
value at year 4: 1 N; 8 I/yr; -21, 803.58 PV; CPT FV 23, 547.87
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