An annual deposit of A1-$1,500 in a saving account is made for 6 years starting year 1. In year 9, a one-time deposit of $3,500 is made. In year 11, a one-time withdrawal of $2,500 is made. Then another series of annual deposits of A2 started for 7 years starting from year 12, increasing by $350 every year. If a one-time withdrawal of $900 was made in year 19 and the present worth of the whole amounts of deposits and withdrawals is $-20,50 what is the value of A2? If the whole life cycle is to be repeated forever with a life cycle of 19 years? * what is the capitalized cost and the annual worth? Assume an interest rate of 6%?

An annual deposit of A1-$1,500 in a saving account is made for 6 years starting year 1. In year 9, a one-time deposit of $3,500 is made. In year 11, a one-time withdrawal of $2,500 is made. Then another series of annual deposits of A2 started for 7 years starting from year 12, increasing by $350 every year. If a one-time withdrawal of $900 was made in year 19 and the present worth of the whole amounts of deposits and withdrawals is $-20,50 what is the value of A2? If the whole life cycle is to be repeated forever with a life cycle of 19 years? * what is the capitalized cost and the annual worth? Assume an interest rate of 6%?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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