Find the PV of the cash flows shown in Figure if the interest rate is 9% APR compounded monthly.

Figure?Cash flow timelines.

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Part a 0 Part b 0 Part c 0 $1,500 $0 1 $250 1 $250 1 $1,250 $250 ++. T 2 $500 2 $500 2 $1.000 $500 3 $750 3 $750 3 $750 $750 4 $1,000 4 $1.000 $500 $1.000 5 $1,250 5 $1,250 75 $250 $1,250 6 $1.500 6 $1,500 6 $1.500 7 $1.750 7 $1,750 $1.750 8 years $2,000 8 years $2,000 8 years Part a 0 Part b 0 Part c 0 $1,500 $0 1 $250 1 $250 1 $1,250 $250 ++. T 2 $500 2 $500 2 $1.000 $500 3 $750 3 $750 3 $750 $750 4 $1,000 4 $1.000 $500 $1.000 5 $1,250 5 $1,250 75 $250 $1,250 6 $1.500 6 $1,500 6 $1.500 7 $1.750 7 $1,750 $1.750 8 years $2,000 8 years $2,000 8 years

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Hello First we need to calculate the Effective Annual Rate EAR using the formula EAR ... View the full answer