2 Given the cash flow table below determine the unknown valu

2. Given the cash flow table below, determine the unknown value of A if the interest rate is 896 Year Cash Flow 22,000 -2A 2A -2A 2A 4 5 A) $ 1,863 B) $1,983 C) $2,063 D) $2,540

Correct Answer:

D.$2540

Working Note:

R = 8%

22000 = 2A*(1-1/(1.08^5)/.08 + A/1.08^5

22000 = 2A*3.99 + A*.68

A = 22000/(2*3.99 + .68)

A = $2540.41 or $2540

2. Given the cash flow table below, determine the unknown value of A if the interest rate is 896 Year Cash Flow 22,000 -2A 2A -2A 2A 4 5 A) $ 1,863 B) $1,983 C

2 Given the cash flow table below determine the unknown valu

Solution

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