A series of five constant dollar (or real dollar) payments beginning with $8000 at the end of the first year, are Increasing at the rate of 5% per year. Assume that the average general inflation rate is 5% and the market interest rate is 12% during this inflationary perlod. What is equivalent present worth of the series? Answers: $36,346 $28,838 $25,892 $29,406

A series of five constant dollar (or real dollar) payments beginning with $8000 at the end of the first year, are Increasing at the rate of 5% per year. Assume that the average general inflation rate is 5% and the market interest rate is 12% during this inflationary perlod. What is equivalent present worth of the series? Answers: $36,346 $28,838 $25,892 $29,406

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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