What is the present value of the cash-flow stream

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Question

Your wealthy uncle established a bank account with $2,600 for you when you were born. For the first 7 years of your life, the interest rate earned on the account was 5%. Since then, rates have been only 3%. Now you are 22 years old and ready to cash in. How much is in your account? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

What is the present value of the following cash-flow stream if the interest rate is 4%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Year Cash Flow

1 $270

2 470

3 370

Reference no: EM132341401

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