Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone show me how to solve this without using excel. A person you trust foresees the need for a loan and suggests that you

Can someone show me how to solve this without using excel.

image text in transcribed

A person you trust foresees the need for a loan and suggests that you loan them $2000 at the end of year 1, $1000 at the end of year 2, nothing in year 3, and then they will pay you $1000 in year 4, $2000 in year 5, and $3000 in year 6. They note that you will pay out a total of $3000 to them, and then they will pay you back $6000 to you, allowing you to double your money. If you are able to make 18% per year on your investments, determine the present worth of the series of cash flows. o o o o $707.36 $473.72 $268.54 $88.20

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jeff Madura

7th Edition

0134989961, 978-0134989969

More Books

Students also viewed these Finance questions

Question

Always show respect for the other person or persons.

Answered: 1 week ago

Question

Self-awareness is linked to the businesss results.

Answered: 1 week ago

Question

1. Too reflect on self-management

Answered: 1 week ago