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please ansnwer these questions 6. (PV single cash flow, finding r ) If you deposit $25,000 today, Union Bank offers to pay you $50,000 at
please ansnwer these questions
6. (PV single cash flow, finding r ) If you deposit $25,000 today, Union Bank offers to pay you $50,000 at the end of 10 years. What is the annual interest rate offered by the bank? 7. (PV annuity) Your uncle has just announced that he's going to give you $10,000 per year at the end of each of the next 4 years. If the relevant interest rate is 7%, what's the value today of this promise? 8. (PV growing annuity) "Starving artists" is an organization that supports painters by giving them a guaranteed annual income. Majd has been promised an annual payment from Starving Artists. The 10 payments start today ($10,000) and increase by 2% per year. Assume that the interest rate is 14%. What is the value today of the Starving Artist grant Step by Step Solution
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