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The appropriate discount rate for the following cash flows is 7.48 percent per year. Year Cash Flow 1 $2,500 2 $0 3 $3940 4 $2190

The appropriate discount rate for the following cash flows is 7.48 percent per year.

Year Cash Flow

1 $2,500

2 $0

3 $3940

4 $2190

What is the present value of the cash flows?

The interest rate that is most commonly quoted by a lender is referred to as which one of the following?

A. Annual percentage rate.
B. Compound rate.
C. Effective annual rate.
D. Simple rate.
E. Common rate.

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