Question
A) Suppose V n is the value of an asset at a time point that is n periods after the reference point. If V 16
A) Suppose Vn is the value of an asset at a time point that is n periods after the reference point. If V16=685 and the discount rate is 4% per period, then V-22=_________.
B) In the next six years, there will be six cash inflows: $338, $227, $314, $364, $271, $367, all received at the end of each year. The interest rate is 5.1%. Find the FV of the cash flows in 8 years.
C)The effective annual interest rate of a loan is 9.7%. The customer needs to make 6 payments a year. The APR of the loan is ____%.
D) In the next 5 years, you will receive $548 at the end of each year. The discount rate is 6.7%. The present value of the annuity is ________.
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