Question: DIRECTIONS. (1) Identify all given and required. (2) Draw the cash flow diagram. (3) Show the step-by-step solution of each problem 1. Compare the worth

DIRECTIONS. (1) Identify all given and required. (2) Draw the cash flow diagram. (3) Show the step-by-step solution of each problem 1. Compare the worth of 1,000 after 5 years if invested at 10% simple interest rate and 10% effective rate. (Given - 4 points; Required - 2; CFD - 6; Solution - 8) 2. What nominal rate compounded semi-annually is equivalent to 10% effective rate? Formulate your own problem using these two rates. (Given 2; Required 2; CFD - 3; Solution - 3; Problem - 10)

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