Please help with my construction manegment hw question QUESTION 7 Based on the c

Question

Please help with my construction manegment hw question

QUESTION 7 Based on the cash flows given below, determine the uniform annual equivalent value for each of the seven years at 12% compounding interest. EOY 1 Cash$1,000 S3,000 $5,000 $7,000 S9,000$11,000 $13,000 flow 4 A. $5,103 B. $6,103 O C.$1,198 D.$1,255 QUESTION 8 Pete takes out a five-year loan with a 12% nominal interest compounded monthly. What is the present value of the loan if his monthly payments are S3,500? A. $12,406 OB. $27,575 OC $157,343 D.$29,134 OE. $16,987

Explanation / Answer

7)

present value of cash flow

=1000/(1+12%)^1+3000/(1+12%)^2+5000/(1+12%)^3+7000/(1+12%)^4+9000/(1+12%)^5+11000/(1+12%)^6+13000/(1+12%)^7

=27852.29

uniform annual cash flows

=27852.29/((1-(1+12%)^(-7))/12%)

=6103

the above is answer..

8)

present value of the loan

=3500*((1-(1+(12%/12))^(-5*12))/(12%/12))

=157343

the above is answer..

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