Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
5. Please use the formula provided to answer the problem
![Determine the equal payment series future worth
factor of an annuity of P15,000 per year for 25 years
at 18% interest annually.
Add your answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7053b554-3a97-4d68-beed-d147b9a2b76e%2F26d3ef00-daf8-4a31-a9e5-d86f3052acbc%2Fkv182mc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Determine the equal payment series future worth
factor of an annuity of P15,000 per year for 25 years
at 18% interest annually.
Add your answer
![Legend:
Cc - Capitalized Cost (Currency)
Fc - First Cost (Currency)
Mc - maintenance Cost (Currency)
Rc - Replacement Cost (Currency); if no Re: Re Fe
Sy- Salvage Value (Curency); if no Sy: Sy = 0
A - Periodic Amount (Currency)
F-Future Value (Currency)
G - Periodic Amount Increment Amount (Currency)
P - Present Value (Currency)
g - Periodic Amount Increment Rate (Persentage)
i-Nominal Interest Rate (Percent)
m - Number of Periods per Year (Number)
r - Effective Interest Rate (Percent)
t-Number of Years (Number)
Formulae:
Compounding Transformation (i, (m₂)→ 1₂ (m₂)): (1 + ) = (1 +)**
Perpetuity (t=00):
Ordinary Annuity (Payment at End of Period):
P=A1-(1+1)-²)
Arithmetic Gradient:
Geometric Gradient:
Capitalized Cost:
n = mt
Annuity Due (Payment at Beginning of Period):
r=-
m
F = P(1+r)"
P = F(1+r)-R
F=A
F=A
= A ((1+r)^²-1)
F=
P=A (1-(1+r)^)(1+r)
= A (¹ + r)² - 1) (1 + r)
T
FA[(1+r)-1]G[-nr + (1+r)" - 1]
T
r2
A[(1+r)"-(1+g)"]
T-9
Rc-Sv
Cc=Fc++ (1+r)"-1
A = Cer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7053b554-3a97-4d68-beed-d147b9a2b76e%2F26d3ef00-daf8-4a31-a9e5-d86f3052acbc%2Fbgwrbnm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Legend:
Cc - Capitalized Cost (Currency)
Fc - First Cost (Currency)
Mc - maintenance Cost (Currency)
Rc - Replacement Cost (Currency); if no Re: Re Fe
Sy- Salvage Value (Curency); if no Sy: Sy = 0
A - Periodic Amount (Currency)
F-Future Value (Currency)
G - Periodic Amount Increment Amount (Currency)
P - Present Value (Currency)
g - Periodic Amount Increment Rate (Persentage)
i-Nominal Interest Rate (Percent)
m - Number of Periods per Year (Number)
r - Effective Interest Rate (Percent)
t-Number of Years (Number)
Formulae:
Compounding Transformation (i, (m₂)→ 1₂ (m₂)): (1 + ) = (1 +)**
Perpetuity (t=00):
Ordinary Annuity (Payment at End of Period):
P=A1-(1+1)-²)
Arithmetic Gradient:
Geometric Gradient:
Capitalized Cost:
n = mt
Annuity Due (Payment at Beginning of Period):
r=-
m
F = P(1+r)"
P = F(1+r)-R
F=A
F=A
= A ((1+r)^²-1)
F=
P=A (1-(1+r)^)(1+r)
= A (¹ + r)² - 1) (1 + r)
T
FA[(1+r)-1]G[-nr + (1+r)" - 1]
T
r2
A[(1+r)"-(1+g)"]
T-9
Rc-Sv
Cc=Fc++ (1+r)"-1
A = Cer
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