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6 May, 14:46

Suppose you charge me a 9%annual interestrate and i promise to pay you $3,000 a year for four years (first payment is one year from today) plus $9,000 five years from now. how much is this stream of cash flows worth today

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  1. 6 May, 16:44
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    PW = 3000 * (((1.09^4) - 1) : (.09*1.09^4) + 9000*1.09^-5 = $15568.50
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