How much will you have after eight years if the interest rate is 7 percent? What is the present…

Future Value with Multiple Cash Flows

You plan to make a series of deposits in an individual retirement account. You will deposit $1,000 today, $2,000 in two years, and $2,000 in five years.

If you withdraw $1,500 in three years and $1,000 in seven years, assuming no withdrawal penalties, how much will you have after eight years if the interest rate is 7 percent? What is the present value of these cash flows?

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