4. Consider that you are depositing 1000 Riyals, annually, from year 2021 to year 2023 (as shown in the diagram). You decide to take this money out in installments of A riyals (each) from 2023-2025. Calculate the value of A, if the annual interest rate is 10 %. THE BASE YEAR of the scheme is YEAR 2023. ---. V42 =1000 (F/A, 0.1, 3)... ..(1) ...... V4,1= A +A (P/A, 0.1,2)..... (2) If equations are equal; A=1206.5 Riyal
4. Consider that you are depositing 1000 Riyals, annually, from year 2021 to year 2023 (as shown in the diagram). You decide to take this money out in installments of A riyals (each) from 2023-2025. Calculate the value of A, if the annual interest rate is 10 %. THE BASE YEAR of the scheme is YEAR 2023. ---. V42 =1000 (F/A, 0.1, 3)... ..(1) ...... V4,1= A +A (P/A, 0.1,2)..... (2) If equations are equal; A=1206.5 Riyal
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![4. Consider that you are depositing 1000 Riyals, annually, from
year 2021 to year 2023 (as shown in the diagram). You decide
to take this money out in installments of A riyals (each) from
2023-2025. Calculate the value of A, if the annual interest rate is
10 %. THE BASE YEAR of the scheme is YEAR 2023.
V42 =1000 (F/A, 0.1, 3)... .(1)
V4,1= A +A (P/A, 0.1,2).....
(2)
....
If equations are equal;
A=1206.5 Riyal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff6a7018-0f3c-42ef-be3d-e5361b3f9d9f%2F03695500-f3be-48fe-ab6d-ef6d300a9372%2Ftncx6p_processed.png&w=3840&q=75)
Transcribed Image Text:4. Consider that you are depositing 1000 Riyals, annually, from
year 2021 to year 2023 (as shown in the diagram). You decide
to take this money out in installments of A riyals (each) from
2023-2025. Calculate the value of A, if the annual interest rate is
10 %. THE BASE YEAR of the scheme is YEAR 2023.
V42 =1000 (F/A, 0.1, 3)... .(1)
V4,1= A +A (P/A, 0.1,2).....
(2)
....
If equations are equal;
A=1206.5 Riyal
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