Find the present equivalent worth for the annual cash flow series at an interest rate of 10% per year compounded quarterly n Net cash Flow 0 0 1 - 10 $406 11 - ∞ $464 Interest rate should be rounded of by 5 decimal places and final answer to 2 decimal places
Find the present equivalent worth for the annual cash flow series at an interest rate of 10% per year compounded quarterly n Net cash Flow 0 0 1 - 10 $406 11 - ∞ $464 Interest rate should be rounded of by 5 decimal places and final answer to 2 decimal places
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Solve the following and draw the cash flow diagram
Find the present equivalent worth for the annual cash flow series at an interest rate of 10% per year compounded quarterly
n Net cash Flow
0 0
1 - 10 $406
11 - ∞ $464
Interest rate should be rounded of by 5 decimal places and final answer to 2 decimal places
Note: Do not use excel
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