12

Jim sold a car and accepted a note promising cash flows of $1,000 at the end of Year 1, and $2,000 at the end of Years 2, 3, and 4 as his payment. What was the effective price he received for the car, assuming an interest rate of 8.70%? Your answer should be between 4,715.00 and 6,525.00, rounded to 2 decimal places, with no special characters