An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $500 at the end of Year 6.
If other investments of equal risk earn 7% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent.

Explanation:

A) Present value

You must discount each cash flow (payment) according to the moment when it is paid, at the same rate of return of other investments fo equal risk: 7%.

Thee formula that you must use is:

Where PV is the present value; CF₁, CF₂, CF₃, CF₄, CF₅, and CF₆ are the cash flows of the years 1, 2, 3, 4, 5, and 6 respectively, and i is the annual return.

Substituting:

Computing:

B) Future value

The formula for future value is:

Where, FV is the future value to calculate; PV is the present value already calculated, r is the rate of return, 7% = 0.07); and t is the number of periods, 6 years.

Substituting and computing:

i don’t no. snskdbdbsjxbdbxbxhskd

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.