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How much will he will sell the car after five years

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Question A) Ayman will buy a car today for LE160,000. Given that interest rates in the market are 9.5%, how much will he will sell the car after 5 years?

Question B) What is the future value of the following cash flow stream after 5 years at an interest rate of 8.0%?

years cashflow

1 L.E. 750

2 L.E. 2,450

3 L.E. 3,175

4 L.E. 4,400

Ahmed will deposit $5,000 in a bank today. Mostafa will deposit $2,000 today and $3,500 after 4 years from today. Assuming that interest rates in the economy is 7.5%, who is better off Ahmed or Mostafa and why?

Reference no: EM132613867

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