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Information You have settled a dispute with a neighbor, and agree to make semi-onnuni payments to him for 5 years. Starting 6 months from now,

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Information You have settled a dispute with a neighbor, and agree to make semi-onnuni payments to him for 5 years. Starting 6 months from now, you will pay him \$500. Every 6 months thoreofter, you will make another payment that is 2.49 larger than the previous payment. In other words. In 6 months you will pay $500, then 6 months later you will pay 2.4% more than that payment, with payments continuing to grow until 5 years are over. Your neighbor suggests that you pay him $5,000.00 to day, to be done with the payments. You decide that the appropriate semi-annual periodic interest rate is 3.2% (.032), Ignore taxes. You value the payments to see if your neighbor's offer is in your best interest. What are the payments worth? Q 18 (1 point) The cash flow at T=0 is Select one: a. $0.00 b. $500.00 Q 19 (2 points) The cash flow at T=1 is Select one: a. $0.00 b. $500.00 c. $512.00 d. $516.00

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