Question: Please solve the following with the formula used, working and other explanations (You will have to use a financial calculator where necessary) Example S. Uneven

Please solve the following with the formula used, working and other explanations

(You will have to use a financial calculator where necessary)

Example S. Uneven Income Stream (PV) What is the present value of the following cash flows if the discount rate is 8.5%?

Year 1 - $ 1 500

Year 2 - $ 2 500

Year 3 - $-3 500

Year 4 - $ 3 500

Example T. Uneven Income Stream (FV) What is the future value of the following cash flows if the discount rate is 8.5%?

Year 1 - $ 1 500

Year 2 - $ 2 500

Year 3 - $-3 500

Year 4 - $ 3 500

Example U. $50,000 is borrowed, to be repaid in equal, annual payments over the next ten years with 8% interest. Approximately how much principal is amortised with the second payment?

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