Draw the cash flow diagram for john

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Reference no: EM131962859

John has made a financial arrangement to borrow $2,000 at the end of the 1st year and another $2,000 at the end of the 4th and 6th year; while another $3,000 at the end of the 2nd and 7th year. The nominal interest rate varies over the next few years as shown in the following table

Year	0 to 3	3 to 6	6 to 9
Nominal Interest Rate i	10%, compounded monthly	15%, compounded yearly	12%, compounded quarterly

(a) Draw the cash flow diagram for John.

(b) It is required for John to repay all the borrowed money at the end of eight years, how much will be repaid by John as a lump-sum amount at the end of eight years?

Reference no: EM131962859

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