Q10. For the cash flow shown below: + Year 1 2 4 Cash Flow 2000 2000-G 2000-2G 2000-3G A) Draw the cash flow diagram? B) If the value of G equal to $200, determine the present value with an interest rate of 10% per year? C) Determine the value of G that will make the future worth in year 4 equal to $6000 at an interest rate of 10% per year?
Q10. For the cash flow shown below: + Year 1 2 4 Cash Flow 2000 2000-G 2000-2G 2000-3G A) Draw the cash flow diagram? B) If the value of G equal to $200, determine the present value with an interest rate of 10% per year? C) Determine the value of G that will make the future worth in year 4 equal to $6000 at an interest rate of 10% per year?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Q10. For the cash flow shown below:
Year
1
3
4
Cash Flow
2000
2000-G
2000-2G
2000-3G
A) Draw the cash flow diagram?
B) If the value of G equal to $200, determine the present value with an interest rate of 10%
per year?
C) Determine the value of G that will make the future worth in year 4 equal to $6000 at an
interest rate of 10% per year?
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