Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Question 11

Transcribed Image Text:$637.28)
4-52
11. (4-53) Assume a 10% interest rate and find S, T, and x.
(Answer: S = $218.90; T = $54.30; x = $66.24)
150
100
90
60
50
30
01- 2- 3- 4
0-1-2-3-4-5
i = 10%
(b) T = uniform value for 5 periods
(a) S = value at t=0
4x
3x
A
edish
2x
0-1
i = 10%
V
(c) x = ?
500
4-52
12. (4-54) Compute the unknown values.
(Answer: C = $109.45; F = $276.37; A = $60.78)
100
75
75
50 A
25
0 1-2-3-4
i = 10%
(a) C = value at t=0
3-4
50
2- 3- 4
i = 10%
(b) F = value at t=4
25
01-
120
8C
40
0 1 2
i=1
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