For the following cash flow find F for two cases , first , assume that the inter - period cash flow earns no interest , second , the inter - period cash flow earns interest . Assume the interest rate is 6 % per year , compounded quarterly . Show all your work , cash flows , before , and after , how did you calculate the effective interest rate for each case , and why .

For the following cash flow find F for two cases , first , assume that the inter - period cash flow earns no interest , second , the inter - period cash flow earns interest . Assume the interest rate is 6 % per year , compounded quarterly . Show all your work , cash flows , before , and after , how did you calculate the effective interest rate for each case , and why .

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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