3.67 Determine the interest rate (i) that makes the pairs of cash flows shown economically equivalent. 0 0 $2000 $2000 $2000 $2000 $2000 $2000 1 $2500 1 2 $1875 2 3 Years $1406 3 Years 4 $1055 5 $791 6 $593 56

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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3.67 Determine the interest rate (i) that makes the
pairs of cash flows shown economically equivalent.
0
0
$2000 $2000 $2000 $2000 $2000 $2000
1 2
$2500
1
$1875
3
Years
i=?
$1406
2 3
Years
4
$1055
4
5
$791
6
$593
5 6
Transcribed Image Text:3.67 Determine the interest rate (i) that makes the pairs of cash flows shown economically equivalent. 0 0 $2000 $2000 $2000 $2000 $2000 $2000 1 2 $2500 1 $1875 3 Years i=? $1406 2 3 Years 4 $1055 4 5 $791 6 $593 5 6
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