At a certain interest rate the present values of the following two payment patterns are equal:...

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At a certain interest rate the present values of the following two payment patterns are equal: (0) $350 at the end of 6 years plus $250 at the end of 13 years. ii) $450 at the end of 6 years. At the same interest rate $300 invested now plus $350 at the end of 6 years will accumulate to P at the end of 13 years. Calculate P. P=$ At a certain interest rate the present values of the following two payment patterns are equal: (0) $350 at the end of 6 years plus $250 at the end of 13 years. ii) $450 at the end of 6 years. At the same interest rate $300 invested now plus $350 at the end of 6 years will accumulate to P at the end of 13 years. Calculate P. P=$

Answer rating: 100% (QA)

Lets call the interest rate we are looking for r We can use the present value formula to set up the ... View the full answer