# After placing $8,000 in a savings account paying annual compound interest of 8%, calculate the amount that will accumulate if it is left for 8 years?

- After placing $8,000 in a savings account paying annual compound interest of 8%, calculate the amount that will accumulate if it is left for 8 years?
- You have just introduced “must have” headphones for the iPod. Sales of the product are expected to be 20,000 units this year and are expected to increase by 16% annually in the future. What are the expected sales in each of the next three years? If the 20,000 units were expected to increase by 18% a year, what are the expected sales next year for this product?
- What is the present value of a perpetual stream of cash flow that pays $80,000 at the end of one year and grows at a rate of 5% indefinitely? The rate of interest used to discount the cash flows is 10%. What is the present value of the growing perpetuity
- What is the present value of a $650 perpetuity discounted back to the present at 10%? What is the present value of the perpetuity?
- You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:end of year A B C $ 1,000 $ 1,000 5,000 2,000 1,000 5,000
- W 3,000 1,000 (5,000)
- (4,000) 1,000 (5,000) 4,000 3,000 15,000
- What is the present value of investments A, B, and C if the appropriate discount rate is 10%?

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