Question: Present and Future Value of an Uneven Cash Flow Stream
An investment will pay $200 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and $700 at the end of Year 6. If other investments of equal risk earn 5% annually, what is its present value? Round your answer to the nearest cent. $
What is its future value? Round your answer to the nearest cent. $
Effective Rate of Interest
A mortgage company offers to lend you $85,000; the loan calls for payments of $8,163.76 at the end of each year for 30 years. What interest rate is the mortgage company charging you? Round your answer to two decimal places. %