3. (15 points) If you borrow $20,000 at an interest rate of 10%, compounded annually, with the repayment schedule as follows, what is the amount A? Ans: $4,363.38 $20,000 years 1 2 3 4 5 6 7 8 0 A A A A A A A2. (20 points) What value of X makes these two cash flows equivalent in terms of the present value (at n=0) assuming an interest rate of 10%? Ans: $708.88 100 100 150 100 150 100 X 4 0 1 2 3 5 0 1 2 31 5 X 200