*Using Financial Calculator TI 84 Plus

LG P5-51 Growth rates You are given the series of cash flows shown in the following table. A $500 560 640 Cash flows B $1,500 1,550 1,610 1,680 1,760 1,850 1,950 2,060 C $2,500 2,600 2,650 2,650 2,800 - 720 800 2,850 2,900 2,170 2,280 a. Calculate the compound annual growth rate between the first and last payment in each stream. ment . . . . . . 206 PART 2 Financial Tools b. If year-1 values represent initial deposits in a savings account paying annual in- terest, what is the annual rate of interest earned on each account? LG P5-51 Growth rates You are given the series of cash flows shown in the following table. A $500 560 640 Cash flows B $1,500 1,550 1,610 1,680 1,760 1,850 1,950 2,060 C $2,500 2,600 2,650 2,650 2,800 - 720 800 2,850 2,900 2,170 2,280 a. Calculate the compound annual growth rate between the first and last payment in each stream. ment . . . . . . 206 PART 2 Financial Tools b. If year-1 values represent initial deposits in a savings account paying annual in- terest, what is the annual rate of interest earned on each account