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Using as few factors as possible, determine the equivalent annuity A from the following cash flows. The interest rate is 5%. | i=5% 40 -90 90 40 90 40 90 -10 40 90 40 i 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ↓ ↓ ↓ -10 -10 -10 90 -10

Using as few factors as possible, determine the equivalent annuity A from the following cash flows. The interest rate is 5%. | i=5% 40 -90 90 40 90 40 90 -10 40 90 40 i 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ↓ ↓ ↓ -10 -10 -10 90 -10

Essentials Of Investments
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
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Question Using as few factors as possible, determine the equivalent annuity A from the following cash flows. The interest rate is 5%. i=5% 0 -90 40 -10 90 0 1 2 1 2 3 4 5 6 3 40 -10 90 4 5 = 6 40 7 8 -10 7 A 8 90 90 40 ¡Î 11 12 9 10 -10 9 10 11 12 m➜ 13 40 -10 14 13 14 90 15 15
Transcribed Image Text:Question Using as few factors as possible, determine the equivalent annuity A from the following cash flows. The interest rate is 5%. i=5% 0 -90 40 -10 90 0 1 2 1 2 3 4 5 6 3 40 -10 90 4 5 = 6 40 7 8 -10 7 A 8 90 90 40 ¡Î 11 12 9 10 -10 9 10 11 12 m➜ 13 40 -10 14 13 14 90 15 15
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