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(35 points) The following cash flow diagram indicates the yearly payments you will have in the future. Assume that the i
Posted: Sun Jul 03, 2022 1:06 pm
by answerhappygod
- 35 Points The Following Cash Flow Diagram Indicates The Yearly Payments You Will Have In The Future Assume That The I 1 (43.14 KiB) Viewed 20 times
(35 points) The following cash flow diagram indicates the yearly payments you will have in the future. Assume that the interest rate is 12% per year. 16 17 ← 2000 1800 2400 2200 18 19 20 21 a) (15 pts.) What is the present value (at time 0) of the payments above? b) (10 pts.) Assume that the present value (at time 0) of the payments above is $8400. What amount should you save to cover these future payments for the first 33 months if you expect your parents to deposit into your account $400 at the beginning? {"elem c) (10 points) Explain how your answers to (a) and (b) will change if the interest rate increases. Write your comments in your words. {"elements":[],"constraints":[],"displays":[{"id":"","cen + 38