The following cash flow diagram indicates the monthly payments you will have in the future. Assume that the interest rate is 12% рет уеаrг. $3,200 $2.900 $2,400 $2.000 16 17 I8 19 20 21 ) What annual amount should you save for the first 7 months to complete the following payments starting from 18th month, if you expect your parents to also deposit into your account $1000 at the beginning of month 27 b) )Explain how your answers to (a) will change if the interest rate increases. Write your comments in your words
The following cash flow diagram indicates the monthly payments you will have in the future. Assume that the interest rate is 12% рет уеаrг. $3,200 $2.900 $2,400 $2.000 16 17 I8 19 20 21 ) What annual amount should you save for the first 7 months to complete the following payments starting from 18th month, if you expect your parents to also deposit into your account $1000 at the beginning of month 27 b) )Explain how your answers to (a) will change if the interest rate increases. Write your comments in your words
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 28P
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