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Question 2 (18 points total). Consider the monthly cash flows shown in the diagram below. i=5% compounded weekly i=6% compounded continuously i=5.5% compounded monthly $650

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Question 2 (18 points total). Consider the monthly cash flows shown in the diagram below. i=5% compounded weekly i=6% compounded continuously i=5.5% compounded monthly $650 $125 $125 $125 $125 $125 $125 0 1 2 3 4 5 6 7 8 9 10 months (a) [6 points) Find the effective interest rates for each of the three given nominal interest rates. Note: Present your answers as percentage with the appropriate suffixes. i-6% compounded 1=5.5% compounded monthly 1-5% compounded weekly continuously Figure repeated from previous page for reference $650 $125 $125 $125 $125 $125 $125 3 4 5 6 7 8 9 0 1 2 10 months to y 12.0 (b) [12 points) Find the economic equivalence of this series at year 8, (i.e. find Vs)

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