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In January 1, 2016, Rodrigo Rodríguez knew he would receive the following payments: $2,000 in January 1, 2016; $3,000 in July 31, 2016; $9,000 in August 31, 2016; $1,500 in March 1, 2017; and $10,000 in August 31, 2017.

a. Draw the cash flow diagram for this problem.

b. Using a 1% monthly interest rate, how much money will Rodrigo have at the end of year 2017.

c. What is the uniform monthly payment in years 2016-2017 that is equivalent to Rodrigo’s revenue with the described income stream?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92727117

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