10. What value of A makes the two annual cash flows equivalent at 15% interest compounded annually? 9 Click the icon to view the accompanying cash flow diagram. 10 Click the icon to view the interest factors for discrete compounding when i= 15% per year. The value of A is $ (Round to the nearest cent.) 9: More Info $120 $120 $120 $100 $100
10. What value of A makes the two annual cash flows equivalent at 15% interest compounded annually? 9 Click the icon to view the accompanying cash flow diagram. 10 Click the icon to view the interest factors for discrete compounding when i= 15% per year. The value of A is $ (Round to the nearest cent.) 9: More Info $120 $120 $120 $100 $100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
10.
Transcribed Image Text:Single Payment
Equal Payment Series
Compound
Present
Compound
Sinking
Present
Capital
Recovery
Amount
Worth
Amount
Fund
Worth
Factor
Factor
Factor
Factor
Factor
Factor
(F/P, i, N)
(P/F, i, N)
(FIA, i, N)
(A/F, i, N)
(PIA, i, N)
(A/P, i, N)
1
1.1500
0.8696
1.0000
1.0000
0.8696
1.1500
1.3225
0.7561
2.1500
0.4651
1.6257
0.6151
3
1.5209
0.6575
3.4725
0.2880
2.2832
0.4380
4
1.7490
0.5718
4.9934
0.2003
2.8550
0.3503
2.0114
0.4972
6.7424
0.1483
3.3522
0.2983
6.
2.3131
0.4323
8.7537
0.1142
3.7845
0.2642
7
2.6600
0.3759
11.0668
0.0904
4.1604
0.2404
8
3.0590
0.3269
13.7268
0.0729
4.4873
0.2229
3.5179
0.2843
16.7858
0.0596
4.7716
0.2096
10
4.0456
0.2472
20.3037
0.0493
5.0188
0.1993
11
4.6524
0.2149
24.3493
0.0411
5.2337
0.1911
12
5.3503
0.1869
29.0017
0.0345
5.4206
0.1845
13
6.1528
0.1625
34.3519
0.0291
5.5831
0.1791
14
7.0757
0.1413
40.5047
0.0247
5.7245
0.1747
15
8.1371
0.1229
47.5804
0.0210
5.8474
0.1710
Transcribed Image Text:10. What value of A makes the two annual cash flows equivalent at 15% interest compounded annually?
9 Click the icon to view the accompanying cash flow diagram.
10 Click the icon to view the interest factors for discrete compounding when i= 15% per year.
The value of A is $
(Round to the nearest cent.)
9: More Info
$120
$120
$120
$100
$100
3
2
Years
1
5
%3D
A
A
1
3
5
Years
10: More Info
Expert Solution
Step 1
Solution
Concept
Time value of money
We can use the time value of money to equate the cash flows of today and tomorrow
Given
Discount rate =15%
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