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Problem:
You receive a stream of cash flow of $2,200 per year forever with the first payment started four years from now. What is the present value of these cash flows today if interest rate is 10%? Please provide all computation and formulas.

You plan to borrow $35,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? Please provide all computation and formulas.

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  • Category:- Basic Finance
  • Reference No.:- M91145837

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