Present Value for Two Future Cash Flows Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: $40,000 at the end of 4 years and $50,000 at the end of 10 years. Analyze the problem to determine the required deposit. Round your answer to two decimal places. $.

I dont know the answer but I know how to solve it :3 I also helped you. What grade is this for?

Explanation:

Calculate the value of 40,000 that can be withdrawn at the end of 4 years.Future Value- 40kInterest rate %6 (divide 12 by 2)4 years x 2Then Calculate 50,000future value- 50,000interest rate- 6% (12/2)10 years x 2Factor is 0

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan