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You are given the series of cash flows shown in the following table. Cash flows Year A B C 1 $500 $1,500 $2,500 2 560
You are given the series of cash flows shown in the following table.
Cash flows
Year A B C
1 $500 $1,500 $2,500
2 560 1,550 2,600
3 640 1,610 2,650
4 720 1,680 2,650
5 800 1,760 2,800
6 1,850 2,850
7 1,950 2,900
8 2,060
9 2,170
10 2,280
a. Calculate the compound annual growth rate between the first and last payment
in each stream.
b. If year-1 values represent initial deposits in a savings account paying annual
interest, what is the annual rate of interest earned on each account?
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