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PART 1: Find the present value for the following income stream if the interest rate is 7% percent and the payments occur at the end
PART 1:
Find the present value for the following income stream if the interest rate is 7% percent and the payments occur at the end of each year. Cash flow for years 1-4: $750, years 5-11: $800, years 12-17: $1,100
A. $4,767
B. $8,321
C. $6,328
D. $5,189
PART 2:
How long will it take a sum of money to double in value if the annual interest rate is 10 percent? Round answer to one decimal.
A. 20.0 years B. 7.3 years C. 12.6 years D. Insufficient information to determine we need to know the amount of the initial investment
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