Question

What is the present value of the cash flow, at the end of year 1 cash flow is $1000 and $2000 at the end of year two. The interest rate gain given is 10%?

Answer 1

Explanation:

Present Value=

(1+r)

n

FV

where:

FV=Future Value

r=Rate of return

n=Number of periods

Just apply this.

Answer 2

$1000 18. You agree to pay back $1,100 in 4 weeks for a $1000 payday loan.

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