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3. Suppose the effective annual interest rate is 3%. You will receive $200 in 1 year and $300 in 3 years in exchange for paying
3. Suppose the effective annual interest rate is 3%. You will receive $200 in 1 year and $300 in 3 years in exchange for paying $ 200 in 2 years and $Y in 4 years.
(a) By computing present values, determine Y .
(b) Compute the accumulated value of all dollar amounts at time t = 4 to verify that the equation of value holds at t = 4
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