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please answer both questions. You have just purchased an investment that generates the cash flows shown below for the next four years. You are able
please answer both questions.
You have just purchased an investment that generates the cash flows shown below for the next four years. You are able reinvest these cash flows at 8.61 percent, compounded annually. How much is this investment worth at the end of year four? End of year 1. $403 2. $833 3. $213 4. $234 Round the answer to two decimal places. You plan to apply for a loan from Bank of America. The nominal annual interest rate for this loan is 6.05 percent, compounded daily (with a 365-day year). What is the effective annual rate, or EAR (annual percentage yield), of this loan? Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)Step by Step Solution
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