3d2.

You have just purchased an investment that generates the cash flows shown below for the next four years. You are able reinvest these cash flows at 3.49 percent, compounded annually. How much is this investment worth at the end of year four?

End of year

1. $395
2. $1,182
3. $684
4. $166

Round the answer to two decimal places.

3c1

Big Brothers, Inc. borrows $203,658 from the bank at 19.13 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 6 years. How much will each annual payment be?

Round the answer to two decimal places.

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