A set of cash flows begins at 20000 the first year with an
A set of cash flows begins at $20,000 the first year, with an increase each year until n = 10 years. If the interest rate is 8%, what is the present value when
a) the annual increase is $2000?
b) the annual increase is 10%?
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Imagine that you occupy one of the following positions: the police chief, the city mayor, the bank's chief executive officer, the airport's director of security, or the hospital's chief executive officer.
A bank is offering $20,000 6-month CD's for $19,500. What is the nominal annual interest rate? What is the effective annual interest rate? please give both the answers in %.
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