Whose cash flow is best described by the timeline shown below? Date (years) 0 1 2 3 4 Cash Flows -$3,500 $1,000 $1,000 $1,000 $1,000 Question 2Answer a. Karen, who loans a friend $3,500, which friend then pays back the loan in four annual installments of $1,000 b. Leo, who borrows $3,500, and then pays back the loan in four annual payments of $1,000 c. Joe, who puts down $3,500 to buy a car, and then makes annual payments of $1,000 d. Harry, who borrows $3,500, and then receives an annual payment of $1,000
Whose cash flow is best described by the timeline shown below? Date (years) 0 1 2 3 4 Cash Flows -$3,500 $1,000 $1,000 $1,000 $1,000 Question 2Answer a. Karen, who loans a friend $3,500, which friend then pays back the loan in four annual installments of $1,000 b. Leo, who borrows $3,500, and then pays back the loan in four annual payments of $1,000 c. Joe, who puts down $3,500 to buy a car, and then makes annual payments of $1,000 d. Harry, who borrows $3,500, and then receives an annual payment of $1,000
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
Related questions
Question
Whose cash flow is best described by the timeline shown below?
|
Date (years) |
0 |
1 |
2 |
3 |
4 |
|
Cash Flows |
-$3,500 |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
Question 2Answer
a.
Karen, who loans a friend $3,500, which friend then pays back the loan in four annual installments of $1,000
b.
Leo, who borrows $3,500, and then pays back the loan in four annual payments of $1,000
c.
Joe, who puts down $3,500 to buy a car, and then makes annual payments of $1,000
d.
Harry, who borrows $3,500, and then receives an annual payment of $1,000
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