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What is the present value of the following uneven cash flow stream? The annual interest rate is 8%. 0 1 2 3 4 Years |

What is the present value of the following uneven cash flow stream? The annual interest rate is 8%.

0 1 2 3 4 Years

| | | | |

0 100 200 300 -150

You borrow $30,000 to buy a car. The bank charges an interest rate of 5% on the loan. If the loan is to be repaid in equal amounts over 5 years, how much are the annual payments?

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