4. Consider the Cash Flow diagram (Figure 2) where money is deposited in Riyadh Bank for 5 years. The money is withdrawn from year 6 to Year 9, in equal annual installments of A Riyals. Determine the Linear Gradient G and A. Assume the base year is Year 5 and the annual interest rate is 10%.

4. Consider the Cash Flow diagram (Figure 2) where money is deposited in Riyadh Bank for 5 years. The money is withdrawn from year 6 to Year 9, in equal annual installments of A Riyals. Determine the Linear Gradient G and A. Assume the base year is Year 5 and the annual interest rate is 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

4. Consider the Cash Flow diagram (Figure 2) where money is
deposited in Riyadh Bank for 5 years. The money is withdrawn
from year 6 to Year 9, in equal annual installments of A Riyals.
Determine the Linear Gradient G and A. Assume the base year is
Year 5 and the annual interest rate is 10%.
$1.200
Original cash flow
Years
$1.000
3
$800
$600
Figure 2
5
$400
6
A
K
17
8
4879

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