Suppose you will be receiving payments of $140, $180, $220, $260, and $300 at the end of months 2, 3, 4, 5 and 6, respectively, beginning from now (You will get $140 at the end of the second month, $180 at the end of the third, ... , $300 at the end of the sixth month from now). The interest rate is 6% per month. Draw the cash-flow diagram for this cash flow, and find its equivalent present value. Use a uniform gradient in your answer.

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Heres the cashflow diagram for the given cash flow 0 1 2 3 4 5 6 140 180 220 260 300 Interest rate 6 ... View the full answer