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What buttons I would press on a HP 10bii+ Financial Calculator for this problem Please in order and explain! Example 6: PV of a Stream

What buttons I would press on a HP 10bii+ Financial Calculator for this problem

Please in order and explain!

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Example 6: PV of a Stream of CFs Problem: You need money to buy a new car. Your uncle will lend you the money as long as you can pay him back within four years. You offer to pay him the rate of interest that he would otherwise get by putting his money in a savings account. You can pay him $5,000 in one year, then $8,000 each year for the next three years. Suppose your uncle can earn 6% per year on his savings How much can you borrow from your uncle? Example 6: PV of a Stream of CFs Solution: The cash flows you can promise are as follows: 3 $5000 $8000 $8000 $8000 + All you need to do is to calculate the PV of this stream of cash flows. 5000 8000 8000 8000 PV = (1.06) (1.06)? (1.06) (1.06) =4,716.98 + 7,119.97 +6,716.95 + 6,336.75 = 24,890.65

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