Determine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, i, varie as indicated. ܗܢܒܢܐ ܗ ܦܘܫܝܤܝܢ P=? $2,500 $5,000 The present equivalent value is iq = 6% 12=15%| 13 = 12% ig = 6% ig = 6% 16 = 15% 2 3 Years $2,500 (Round to the nearest cent) $5,000 5 Click the icon to view the interest and annuity table for discrete compounding when i= 6% per year. | Click the icon to view the interest and annuity table for discrete compounding when i= 12% per year. ܘ

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Determine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, İk varies
as indicated.
Q
P=?
$2,500
i₁ = 6%
1
$5,000
The present equivalent value is $
1₂ = 15%
2
13 = 12%
14 = 6%
3
Years
$2,500
(Round to the nearest cent.)
4
$5,000
15 = 6% 16 = 15%
5
Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year.
Click the icon to view the interest and annuity table for discrete compounding when i = 12% per year.
6
Transcribed Image Text:Determine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, İk varies as indicated. Q P=? $2,500 i₁ = 6% 1 $5,000 The present equivalent value is $ 1₂ = 15% 2 13 = 12% 14 = 6% 3 Years $2,500 (Round to the nearest cent.) 4 $5,000 15 = 6% 16 = 15% 5 Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 12% per year. 6
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