Question: = Find the unknown quantities, assuming economic equivalence () among each pair of cash flows. i is effective interest rate. (a) P? i= 10%/period A

 = Find the unknown quantities, assuming economic equivalence () among eachpair of cash flows. i is effective interest rate. (a) P? i=

= Find the unknown quantities, assuming economic equivalence () among each pair of cash flows. i is effective interest rate. (a) P? i= 10%/period A = 1500 + 0 1 2 3 3 4 0 1 2. 3 4 Grace period (b) F? i = 10%/period A = 1000 1. L + 0 1 2 3 2 3 4 4 0 1 Careful about properly using A/F (c) A = 200 i = ? (%/period) A P = 800 Think about it 0 1 2 3 4 0 1 N 3 4 (d) F = ? 40 i = 10%/period 30 20 10 A ! 0 1 2 3 4 0 1 2 3 4 Properly decompose your cash flow

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