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Q5: Find the present values of the following cash flow streams. The appropriate interest rate is...

  • Q5: Find the present values of the following cash flow streams. The appropriate interest rate is 6%.
  • Year
  • Cash Stream A
  • 1
  • $100
  • 2
  • 400
  • 3
  • 400
  • 4
  • 400
  • 5
  • 300

Q6: You need to accumulate $10,000. To do so, you plan to make deposits of $1,950 per year - with the first payment being made a year from today - into a bank account that pays 8.05% annual interest. Your last deposit will be less than $1,950 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal? How large will the last deposit be?   

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Answer #1

Q5)

10 Year! Cash flow PVIF@6% Present value 1.000 $ 12 1100 0.943 $ 13 2 400 0.890 |$ 14 3400 0.840 |$ 15 4 400 0.792$ 16 5300 0

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