A radiologist made a financial plan towards a payment of the equipment loan. She decided to make a payment of $5000 per year starting from year 1.

As her budget increases she decides to increase the payment of $700 from year 2 each year all the way till 10 years:

i. Draw the cash flow diagram for the above transactions. 

ii. Find out the present value of such transaction if the interest rate is 14%. iii. Find out the future worth of such transaction if the interest rate is 14%.

Answer rating: 100% (QA)

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