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3 A cash flow diagram is shown below. If the present value P must be calculated using a cutting line at $100, what is the

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3 A cash flow diagram is shown below. If the present value P must be calculated using a cutting line at $100, what is the present value at 8% interest compounded annually? 8% 200 150.00 150 0-10. 2 P: 200 + S50(P/F,8%, 1) + 100(PF.8%,6) + 50(PIA8%,5) . 100(PFS%5) d. c. P: 200 + SSOPF,8%, 1) + 100(PlA8%,6) + 50(P/F,8%,5) + 100(PF,8%,6) e None of above 4An individual deposits an annual bonus into a saving account that pays 6% interest compound annually The size of the bonus increases by $1,000 each year, and the initial bonus amount was $3,000. Determine how much will be in the account immediately after the sixth deposit ,000 . $6,000 $4,000 F= $3,000(FP,6%,6) + 100PA,6%,5)(F/P,6%,5) a, b, F= $3,000(F/A6%,5) + 100(PA6%EXFA6%,6) F= $3,000(F/A6%,6) + 100(PIA6%,6XF/P,6%,6) C. d. F-S3,000(FIA6%,6) + 100(F1A6%,6)(F/P,6%,1) None of above e. 5 You are interested in buying a piece of real property that could be worth $300,000 in 8 years. Assuming that your money is worth 6%, how much would you be willing to pay for the property? a. $208,345.21 b. $203,051.81 c $189,050.89 d. $188,223.71 e. None of above

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