Question: Financial Mathematics question; did not think these problems would take up too much time, so I have two problems instead of just one. And I

Financial Mathematics question; did not think these problems would take up too much time, so I have two problems instead of just one. And I do need answers to both. Will rate kindly!

Financial Mathematics question; did not think these problems would take up too

and

much time, so I have two problems instead of just one. And

These are multiple choice, but I do have to have my work shown.

David can receive one of the following two payment streams: (i) 100 at time 0, 200 at time n, and 300 at time 2n (ii) 600 at time 10 At an annual effective interest rate of i, the present values of the two streams are equal. Given v" = 0.76, determine i. (A) 3.5% (B) 4.0% (C) 4.5% (D) 5.0% (E) 5.5% A store is running a promotion during which customers have two options for payment. Option one is to pay 90% of the purchase price two months after the date of sale. Option two is to deduct X% off the purchase price and pay cash on the date of sale. A customer wishes to determine X such that he is indifferent between the two options when valuing them using an effective annual interest rate of 8%. Which of the following equations of value would the customer need to solve? A) X 100 0.08 1+ 6 =.90 B) (1 X 100 0.08 1+ 6 = .90 X 100 (1.08)" = 90 D) (1.08 = .90 100 1.06 1/6 E) 1 X (1.08)" =.90 100

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