Reading 10 EOC typo?

[hockeytime]

Thanks a lot, cpk123

[truongdv]

@cpk123

PV=-1235, FV=2000, PMT=26, N=18 --> CPT i/y = 4.427% (how the model answer was presented)

Way 2:

PV = -1209 (take off 26 K in the first year as well from the portfolio. Liquidity requirement is removed immediately just like the other 30K and 20 K expenses shown)

FV=2000, PMT=26, N=18 CPT I/Y ==> 4.457%

I think reason for the diff is that, in the way 2, they make 19 payments of 26k in 18 years.

So it should be understood that they have 1235 in year 0 and the first payment of 26k at the end of year.