a. Using the figure above, calculate the future worth (at the end of year 10) of a cash flow series of 10 equal annual deposits of R2500 if all deposits are made at the beginning of cach year starting today (year 0) at 9% annual interest? 1 2 10 years A=R2500 b. If you borrow R13,000 at 8 % compounded annually with the repayment schedule below, what is the amount A? P=R13000 10 year 5. A+100 A- A+200 A+300 A400 A+500 A+600

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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a. Using the figure above, calculate the future worth (at the end of year 10) of a cash flow
series of 10 equal annual deposits of R2500 if all deposits are made at the beginning of
each year starting today (year 0) at 9% annual interest?
Fm?
4
8
10 years
A=R2500
b. If you borrow R13,000 at 8% compounded annually with the repayment schedule below,
what is the amount A?
P=R13000
1
4
10 years
A+100
A-?
A+200
A+300
A+400
A+500
A+600
Transcribed Image Text:a. Using the figure above, calculate the future worth (at the end of year 10) of a cash flow series of 10 equal annual deposits of R2500 if all deposits are made at the beginning of each year starting today (year 0) at 9% annual interest? Fm? 4 8 10 years A=R2500 b. If you borrow R13,000 at 8% compounded annually with the repayment schedule below, what is the amount A? P=R13000 1 4 10 years A+100 A-? A+200 A+300 A+400 A+500 A+600
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