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# Find the future value in 7 years of the following cash flows 2000 in 2 years and 7000 in 4 years The interest rate is 76% pa compounded monthly

Find the future value in 7 years of the following cash flows: 2,000 in 2 years and 7,000 in 4 years. The interest rate is 7.6% p.a. compounded monthly for the first 5 years and 5.8% p.a. compounded half-yearly thereafter. (Correct your answer to the nearest cent without any unit (No need to put "\$"). Do not use "," in your answer. e.g. 123456.78))

3.Your uncle offers to sell you his vintage Rolls Royce. He suggests a payment plan where you pay just \$17,000 today, \$7000 in 11 months and \$12,000 in exactly 20 months from today. If the interest rate is 5.4% per annum compounding monthly, what is the value of the offer (in present day dollars, rounded to the nearest dollar; don’t show \$ sign or commas)?

Feb 08 2020 View more View Less