17. Suppose we have a series of cash flows like this: x dollar at the end of 3 months, 100 dollar at the end of 6 months, x dollar at the end of 9 months, 100 dollars at the end of 1 year, and this pattern goes on forever. We know the present value of these cash flows as of today is $1,000 when discounted at 4% compounded quarterly. Find the value of x. a) $910.99 b) $212.12 I c) - $79.11 d) - $79.90

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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17. Suppose we have a series of cash flows like this: x dollar at the end of 3 months, 100 dollar at the
end of 6 months, x dollar at the end of 9 months, 100 dollars at the end of 1 year, and this pattern
goes on forever. We know the present value of these cash flows as of today is $1,000 when
discounted at 4% compounded quarterly. Find the value of x.
a) $910.99
I
b) $212.12
c) - $79.11
d) - $79.90
18. Suppose there is a series of cash flows: $10 at the end of year 1, $20 at the end of year 2, and
nothing at the end of year 3, $10 dollars at the end of year 4, $20 at the end of year 5, and nothing
at the end of year 6, and this pattern goes for a total 99 years. Assuming EAR is 10%, how much
money will be there at the end of year 99.
a) $1,290,528
b) $103
c) $12,527
d) None of the above
May someone please kindly show the step-
by-step solution by using the financial
calculator or through an easy to understand
method.
Transcribed Image Text:17. Suppose we have a series of cash flows like this: x dollar at the end of 3 months, 100 dollar at the end of 6 months, x dollar at the end of 9 months, 100 dollars at the end of 1 year, and this pattern goes on forever. We know the present value of these cash flows as of today is $1,000 when discounted at 4% compounded quarterly. Find the value of x. a) $910.99 I b) $212.12 c) - $79.11 d) - $79.90 18. Suppose there is a series of cash flows: $10 at the end of year 1, $20 at the end of year 2, and nothing at the end of year 3, $10 dollars at the end of year 4, $20 at the end of year 5, and nothing at the end of year 6, and this pattern goes for a total 99 years. Assuming EAR is 10%, how much money will be there at the end of year 99. a) $1,290,528 b) $103 c) $12,527 d) None of the above May someone please kindly show the step- by-step solution by using the financial calculator or through an easy to understand method.
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