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2. The discount rate of 5 percent. Wilt's Mart is expected to pay an annual cash flow of $39,800 one year from now and grow

image text in transcribed 2. The discount rate of 5 percent. Wilt's Mart is expected to pay an annual cash flow of $39,800 one year from now and grow its cash flow by 4.5% annually for the next 52 years. What is the closest to the present value of this business, compounded annually? A. $301,147.79 B. $295,473.32 C. $895,395.52 D. $1,828,376.14 E. $1,749,642.24 3. You are loaning $1,000 for two years at a 6 percent rate of interest. Which is the closest to how much additional interest you can earn in two years if you compound the rate continuously rather than monthly? Notice the number of years here. A. $0.89 B. $3.90 C. $3.56 D. $0.34 E. $1.98

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