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Answer the following questions. Draw a cash-flow diagram for Problem # 1 and # 2. 1. Karrie wants to borrow some money to buy a
Answer the following questions. Draw a cash-flow diagram for Problem # 1 and # 2. 1. Karrie wants to borrow some money to buy a new car. The car dealer has agreed to defer her payments for 12 months, and Karrie will make 48 end-of- month payments thereafter. If the loan is Php 800,000, and interest is 1% per month, how much will Karrie's payments be? 2. A company ventured into a new undertaking which is expected to provide revenues of $80,000 for the first year which uniformly increases to $200,000 by the end of the ninth year. Determine the present value of these revenues if the interest rate is 12% per year. 3. A bank is offering a car loan to interested individuals. Determine the effective rate of interest if the bank is saying that the interest rate is 9% per year, compounded monthly
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