EAR$=(1AP\frac{R}{m}{)}^m$

Question $5$

$10$ pts

If the interest rate is $4\%,$ Cindy will pay up to $$15,325$ to receive positive cash flows $$x$ in two years and $$Y$ in four years. If the interest rate increases, what is the maximum amount Cindy would be willing to pay today for the same future cash flows $x$ and $Y?$

$$15,325$

Not enough information to determine

less than $$15,325$

more than $$15,325$

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