Question (4) Determine the annual equivalent amount over 4 years for the following cash flow (CF) pattern. The nominal annual interest rate is x1%, and it is compounded x2. EOY 0 2 3 4 CF -$7500-$2000 $14000 $18000 $4000
Question (4) Determine the annual equivalent amount over 4 years for the following cash flow (CF) pattern. The nominal annual interest rate is x1%, and it is compounded x2. EOY 0 2 3 4 CF -$7500-$2000 $14000 $18000 $4000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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X1= 16%
X2= quarterly
write the complete equations used and substitute the values of the factors to find the final answer. Draw the cash flow diagram.

Transcribed Image Text:Question (4) Determine the annual equivalent amount over 4 years for the following cash flow (CF) pattern. The
nominal annual interest rate is x1%, and it is compounded x2.
EOY 0
2
3
4
CF -$7500-$2000 $14000 $18000 $4000
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