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3-49. Find the uniform annual amount that is equivalent to a gradient series in which the first year's payfment is $500, the second year's pay- ment is $600, the third year's payment is $700, and so on, and there is a total of 10 payments. The annual interest rate is 8%.

3-49. Find the uniform annual amount that is equivalent to a gradient series in which the first year's payfment is $500, the second year's pay- ment is $600, the third year's payment is $700, and so on, and there is a total of 10 payments. The annual interest rate is 8%.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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someone solve this but not use excel

3-49. Find the uniform annual amount that is equivalent to a gradient series in which the first year's payfment is $500, the second year's pay- ment is $600, the third year's payment is $700, and so on, and there is a total of 10 payments. The annual interest rate is 8%.
Transcribed Image Text:3-49. Find the uniform annual amount that is equivalent to a gradient series in which the first year's payfment is $500, the second year's pay- ment is $600, the third year's payment is $700, and so on, and there is a total of 10 payments. The annual interest rate is 8%.
47. An expenditure of $20,000 is made to mod- ify a materials-handling system in a small job shop. This modification will result in first-year savings of $2,000, second-year savings of $4,000, and savings of $5,000 per year thereafter. How many years must the system last if a 25% re- tum on investment is required? The system is tailor-made for this job shop and has no salvage value at any time. Use beginning-of-year cash flow convention to solve this problem,
Transcribed Image Text:47. An expenditure of $20,000 is made to mod- ify a materials-handling system in a small job shop. This modification will result in first-year savings of $2,000, second-year savings of $4,000, and savings of $5,000 per year thereafter. How many years must the system last if a 25% re- tum on investment is required? The system is tailor-made for this job shop and has no salvage value at any time. Use beginning-of-year cash flow convention to solve this problem,
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