Question

In: Economics

Using a cash flow diagram draw a diagram for $10,000 invested now, and in 5 years...

Using a cash flow diagram draw a diagram for $10,000 invested now, and in 5 years it grows to $30,000.

Solutions

Expert Solution

Using Cash Flow Diagram, the nominal interest rate is computed 4.90%. Diagram of Cah Flow is also drawn in the above given hand-outs.


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