1. Joe agrees to make the ff. payments from the lending investor End-of-year 1 HN 3 & 2 4 5 Payment 5000 6000 7000 8000 9000

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
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Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 21CE
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answer and draw a cashflow diagram

1. Joe agrees to make the ff. payments from the lending investor
End-of-year
1
~ 3 &in
2
4
5
Payment
5000
6000
7000
8000
9000
Required:
a. Determine the amount of money that he can loan from the lending investor.
b. In case Joe opts to return the money plus interest in equal end-of-year payments, compute the
annuities or the amount of annual payments needed to make. Use 12% interest rate.
Transcribed Image Text:1. Joe agrees to make the ff. payments from the lending investor End-of-year 1 ~ 3 &in 2 4 5 Payment 5000 6000 7000 8000 9000 Required: a. Determine the amount of money that he can loan from the lending investor. b. In case Joe opts to return the money plus interest in equal end-of-year payments, compute the annuities or the amount of annual payments needed to make. Use 12% interest rate.
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