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Problem 11. Determine at what periodic interest rate a $5000 cash receipt occurring at the beginning of year 1 is equivalent to five annual cash
Problem 11. Determine at what periodic interest rate a $5000 cash receipt occurring at the beginning of year 1 is equivalent to five annual cash disbursements. The first four annual cash disbursements are $1000 each and occur at the end of each of the first four years. The last cash disbursement is $2000 and occurs at the end of the fifth year. The periodic interest rate is compounded annually. |
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