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Big Brothers, Inc. borrows $273,349 from the bank at 7.33 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid
- Big Brothers, Inc. borrows $273,349 from the bank at 7.33 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 10 years. How much will each annual payment be?Round the answer to two decimal places.
- You are given an investment to analyze. The cash flows from this investment are
End of year
- $1,604
- $3,318
- $995
- $1,825
- $1,148
What is the future value of this investment at the end of year five if 6.42 percent per year is the appropriate interest (discount) rate?
3.What is the present value of a $523 perpetuity discounted back to the present at 5.74 percent.
The answer should be calculated to two decimal places.
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