Calculate from bank perspective-equivalent net cash flow

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Reference no: EM131927442

Ally bank lent a new gradute $8000 at i=8% per year for 4 years to buy a car.

a) calculate from the bank's perspective ( the lender), the equivalent net cash flow for each of 4 years that this investment in this gradute is expected to produce.

B) compute the amount of unrecovered investmnt for each of the 4 years using the rate of return of the unrecovered balance (the correct basis) and.

C) calculate the same as in part B using the return on the intial $8000 investment.

Reference no: EM131927442

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