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Please show work Multiple cash flows: 1. Today, you took out a loan of to buy a car. You have to pay $400 per month
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Multiple cash flows: 1. Today, you took out a loan of to buy a car. You have to pay $400 per month for the next 5 years. You got an interest rate of 11%. How much was the loan for? 2. You've stumbled upon the fountain of youth. You can sell bottled water from the fountain until the end of time. Each year, you earn $50,000 and it's growing by 2% each year. If you sold the fountain, you'd want at least $920,000 for it. What interest rate is currently available? 3. While investigating a murder, you received some odd offers from suspects. Professor Plum promised you $5,000 in two years. Mrs. White handed you $100 under the table just now. And Colonel Mustard swears he'll give you $75,000 in 20 years. How much are these offers worth today if you can earn 6% interestStep by Step Solution
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