Question: Problem #2 Determine at what periodic interest rate a $2,000 cash receipt occurring at the beginning of year 1 is equivalent to four cash

Problem #2 Determine at what periodic interest rate a $2,000 cash receipt

Problem #2 Determine at what periodic interest rate a $2,000 cash receipt occurring at the beginning of year 1 is equivalent to four cash disbursements: a $575 cash disbursement occurring at the end of year 1, a $600 cash disbursement occurring at the end of year 2, a $625 cash disbursement occurring at the end of year 3, and a $650 cash disbursement occurring at the end of year 4. The periodic interest rate is compounded annually. Interest Rate (%) 8.45% Amount PV 2,000.00 -2,000.00 Period 0 1 -575.00 530.17 2 -600.00 510.10 34 -625.00 489.93 4 -650.00 469.80 Total 0.00

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