Question
Can someone help me please, especially with the timeline? You are required to show the following 4 steps for each problem: (i) Develop the timeline
Can someone help me please, especially with the timeline?
You are required to show the following 4 steps for each problem:
(i) Develop the timeline (linear representation of the timing of cash flows)
(ii) Identify the time value of the money variable (PV, FV, PMT, N, or Rate) which needs to be calculated in the question.
(iii) Identify the values of the remaining four variables (PV, FV, PMT, N, or Rate) from the question. Be sure to input positive or negative signs.
(iv) Calculate the correct value of the variable identified in step (ii).
5. Abner Corporation takes out a $200,000 loan for a piece of new machinery. The annual payments are $21,878.23. If the loan accrues 7.5% interest per year, how many loan payments must the company make? Round to the nearest number of years.
6. Harley invested $5,000 into various stocks and bonds exactly nine years ago. During that time, her account earned an average rate of return of 9.5% per year, compounded monthly. How much is her account worth today? Round to two decimal places.
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