What is the equivalent present worth

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Insider the cash flow transaction depicted in the accompanying cash flow diagram with the changing interest rates specified.

What is the equivalent present worth?

(In other words, how much do you have to deposit now so that you can withdraw dollar 200 at the end of year 1. dollar 200 at the end of year 2. dollar 500 at the end of year 3, and dollar 500 at the end of year 4?)

The equivalent present worth is dollar 1061.133. (Round to the nearest dollar.)

What is the single, effective annual interest rate over four years?

The single, effective annual interest rate over four years is percentage. (Round to one decimal place.)

Reference no: EM131927884

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