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Part $1$

You plan to borrow

$$$$3$ comma $0003,000$

from a bank. In exchange for

$$$$3$ comma $0003,000$

$$today$,$ you promise to pay

$$$$3$ comma $4203,420$

in one year. What does the cash flow timeline look like from your$$perspective$?$ What does it look like from the$$bank$\text{'}$s perspective?

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Part $1$

What does the cash flow timeline look like from your$$perspective$?($Select the best choice$$below$.)$

A$.$

The timeline starts at Period $0$ and ends at Period $1.$ The timeline shows a cash flow of $3,420$ dollars in Period $0$ and minus ~OV dollars in Period $1.$

PeriodPeriod

$00$

$11$

Cash FlowsCash$$Flows

$ $3,420$$$3,420$

negative $ $3,000$$$3,000$

B$.$

The timeline starts at Period $0$ and ends at Period $1.$ The timeline shows a cash flow of minus $3,420$ dollars in Period $0$ and $3,000$ dollars in Period $1.$

PeriodPeriod

$00$

$11$

Cash FlowsCash$$Flows

negative $ $3,420$$$3,420$

$3,0003,000$

C$.$

The timeline starts at Period $0$ and ends at Period $1.$ The timeline shows a cash flow of minus $3,000$ dollars in Period $0$ and $3,420$ dollars in Period $1.$

PeriodPeriod

$00$

$11$

Cash FlowsCash$$Flows

negative $ $3,000$$$3,000$

$ $3,420$$$3,420$

D$.$

The timeline starts at Period $0$ and ends at Period $1.$ The timeline shows a cash flow of $3,000$ dollars in Period $0$ and minus $3,420$ dollars in Period $1.$

PeriodPeriod

$00$

$11$

Cash FlowsCash$$Flows

$ $3,000$$$3,000$

negative $ $3,420$