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Teaching Since: Apr 2017
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    Northwest Florida State College
    Jun-1992 - May-1997

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    Northwest Florida State College,
    Aug-2006 - Nov-2015

Category > Economics Posted 08 May 2017 My Price 9.00

Consider the cash flow transactions depicted in the accompanying cash flow diagram

Consider the cash flow transactions depicted in the accompanying cash flow diagram, with the changing interest rates specified.

 

(a) What is the equivalent present worth? (In other words, how much do you have to deposit now so that you can withdraw $300 at the end of year 1, $300 at the end of year 2, $500 at the end of year 3, and $500 at the end of year 4?)

 

(b) What is the single effective annual interest rate over four years?

 

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Status NEW Posted 08 May 2017 11:05 AM My Price 9.00

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