Question

2.30 Compute the present worth of the principal and interest payments in Problem 2.22 at an interest rate of: (a) 7%. (b) 11%2.22 Draw the cash flow diagram if Strong Metalworking repays a $100K loan with five annual payments. Each payment includes o#30 is what i need help on

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Answer #1

The Formula is: Present Value - Future value (lt interest rate) time period FOV = (1+i)n a) 7% b) 11% = 100000 (1+ 0.07) = 71

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