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Two receipts of $ 1 5 0 0 each are desired at the EOYs ( end - of - years ) 9 and 1 0
Two receipts of $ each are desired at the EOYs endofyears and To make these receipts possible, Four EOY annuity amounts will be deposited in a bank at EOYs and If the banks interest rate i is per year:
a Draw the cash flow diagram.
b Determine the value of A for the four EOY annuity amounts that will be deposited in a bank at EOYs and that establishes equivalence in your cashflow diagram.
c Determine the lumpsum value at the end of year of the completed cashflow diagram based on your answer to part b keep attention to the signs of the cash flows and in this part of the question. Explain your answer to part c
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