Question
What should be the current value of the following uneven stream of annual cash flows, if the required return is 8.0%? Assume end of period
- What should be the current value of the following uneven stream of annual cash flows, if the required return is 8.0%? Assume end of period cash flows and annual discounting/compounding.
Year Cash Flow
- $7,500
- $6,500
- $ 0
- $8,500
- $10,500
2. Midland Bank has granted you a 4-year loan for $22,400. You must repay the loan by making monthly payments at the end of each month, over the 4-year life of the loan. If your monthly payments are $785, what is the rate of interest that Midland is charging you? (State the rate on an annual basis as an APR).
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Big Tech In Finance
Authors: Igor Pejic
1st Edition
139860898X, 978-1398608986
