Question 7: For the cash flows below, find the value of x that makes the equivalent annual worth in years 1 through 7 equal to $300 per year. Use an interest rate of 10% per year. Year 0 1 2 3 Answer: $619.88 Cash Flow, $ 200 200 200 200 Year 4 6697 5 6 Cash Flow, $ X 200 200 200

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Question 7: For the cash flows below, find the value of x that makes the equivalent annual
worth in years 1 through 7 equal to $300 per year. Use an interest rate of 10% per year.
Year
0
1
2
3
Answer: $619.88
Cash Flow,$
200
200
200
200
Year
4
5
6
7
Cash Flow, $
X
200
200
200
Transcribed Image Text:Question 7: For the cash flows below, find the value of x that makes the equivalent annual worth in years 1 through 7 equal to $300 per year. Use an interest rate of 10% per year. Year 0 1 2 3 Answer: $619.88 Cash Flow,$ 200 200 200 200 Year 4 5 6 7 Cash Flow, $ X 200 200 200
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