1. Given the series of payment at the end of each year as follows: P 1000 Year 1 Year 2 1500 Year 3 2000 Up to Year 10 If i = 5% effective a. Find the 10th payment. b. Find the present worth of all payments. c. Find the future worth of all payments (Year 10)

1. Given the series of payment at the end of each year as follows: P 1000 Year 1 Year 2 1500 Year 3 2000 Up to Year 10 If i = 5% effective a. Find the 10th payment. b. Find the present worth of all payments. c. Find the future worth of all payments (Year 10)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Draw the cashflow diagram. Solve using the formula.

1. Given the series of payment at the end of each year as follows:
Year 1
P 1000
Year 2
1500
Year 3
2000
Up to Year 10
Ifi = 5% effective
a. Find the 10th payment.
b. Find the present worth of all payments.
c. Find the future worth of all payments (Year 10)
d. Find the equivalent annual payments.
Ans. 5,500 P 23,547.75, P 38,356.80 P 3,049.54

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