Question: Q7 only, please type or write clearly 4. Consider an investment with the following cash flow: 1 2 3 5 6 7 0 H 4

Q7 only, please type or write clearly 4. Consider an investment

Q7 only, please type or write clearly

4. Consider an investment with the following cash flow: 1 2 3 5 6 7 0 H 4 + $90 $110 $130 $150 How much is this investment worth today if interest rate is 6%? 1 5. How much could the same investment in the question above be sold for at the end of the fourth year if interest rate is 4% at that time? 6. Suppose you take out a 5-year loan of $80,000 at 6% APR to purchase a car. How much is the monthly payment? 7. What is the effective annual rate (EAR) of the loan in the question above

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