Mike receives cash flows of 100

 

(Problem 13.5) Mike receives cash flows of 100 today, 200 in one year, and 100 in two years. The present value of these cash flows is 364.46 at an annual effective rate of interest i. Calculate i.
(Problem 14.2) The present value of two payments of 100 each to be made at the end of n years and 2n years is 100. If i = 0.08, find n.

 

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