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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago, 5 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016

Show transcribed image text 6. Dan invests 5000 into a fund at time 0 and receives payments of 600 at the end of periods 1 - 3, and a payment of 650 at the end of period 4, a payment of 700 at the end of period 5, a payment of 750 at the end of period 6, increasing each payments size by 50 each period, resulting in a payment of 1050 at the end of period 12. Suppose that this investment Is being valued using a preference Interest rate of 4% per period effective. Find the net present value of this Investment. Give your answer rounded to the nearest whole number. Note: This boils down to an increasing annuity problem, and you could solve ?t out using formulas, but you should practice using the Cash-Flow Worksheet built Into the Financial Calculator. For small numbers of payments (i.e. less than 10 or so), it may be faster to do out calculations In the calculator as opposed to hand calculations...just a good tip to know! Answer:
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