he net cash flow diagram of a tradesman's account based on his work is given above. a) According to this cash flow diagram (when n=12 years), calculate the current (at time 0), year 7 and year 12 values of the total money, taking into account the specified interest rate. b) When n=60 years indicated in the figure, n. what will be the value in the year (flow values and trend remain the same)? Note: Show your calculations step by step.

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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The net cash flow diagram of a tradesman's account based on his work is given above. a) According to this cash flow diagram (when n=12 years), calculate the current (at time 0), year 7 and year 12 values of the total money, taking into account the specified interest rate. b) When n=60 years indicated in the figure, n. what will be the value in the year (flow values and trend remain the same)? Note: Show your calculations step by step.
300
300
300
200| 200
200
200
200
200
100
100
100
-1-8–9–10–11–12–-- n = 0
i = 10%
Transcribed Image Text:300 300 300 200| 200 200 200 200 200 100 100 100 -1-8–9–10–11–12–-- n = 0 i = 10%
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