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factor name single payment compound amount single payment present worth uniform series sinking fund capital recovery uniform series compound amount uniform series present worth converts P to F F to P F to A P to A A to F A to P symbol (F/P, 1%, n) (P/F, 1%, n) (A/F, 1%, n) (A/P,1%, n) (F/A, 1%, n) (P/A,1%, n) formula (1+i)n (1+1)-" (1+i)n-1 i(1+i)" (1+i)n-1 (1+1)-1 (1+i)"-1 i(1+i)

factor name single payment compound amount single payment present worth uniform series sinking fund capital recovery uniform series compound amount uniform series present worth converts P to F F to P F to A P to A A to F A to P symbol (F/P, 1%, n) (P/F, 1%, n) (A/F, 1%, n) (A/P,1%, n) (F/A, 1%, n) (P/A,1%, n) formula (1+i)n (1+1)-" (1+i)n-1 i(1+i)" (1+i)n-1 (1+1)-1 (1+i)"-1 i(1+i)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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5. Use the provided chart to solve this problem.

factor name single payment compound amount single payment present worth uniform series sinking fund capital recovery uniform series compound amount uniform series present worth uniform gradient present worth uniform gradient future worth uniform gradient uniform series converts P to F F to P F to A P to A A to F A to P G to P G to F G to A symbol (F/P, i%, n) (P/F, 1%, n) (A/F, i%, n) (A/P, i%, n) (F/A, 1%, n) (P/A, i%, n) (P/G,i%, n) (F/G,1%, n) (A/G, i%, n) formula (1 + i)" (1 + i)-¹ i (1 + i)" - 1 i(1+i)" (1+i)n-1 (1+i)n-1 i (1+i)n-1 i(1+i)n 1- i (1+i)n-1 1² (1+i)n n i(1+i)n (1+i)n-1 n i n (1+i)n-1
Transcribed Image Text:factor name single payment compound amount single payment present worth uniform series sinking fund capital recovery uniform series compound amount uniform series present worth uniform gradient present worth uniform gradient future worth uniform gradient uniform series converts P to F F to P F to A P to A A to F A to P G to P G to F G to A symbol (F/P, i%, n) (P/F, 1%, n) (A/F, i%, n) (A/P, i%, n) (F/A, 1%, n) (P/A, i%, n) (P/G,i%, n) (F/G,1%, n) (A/G, i%, n) formula (1 + i)" (1 + i)-¹ i (1 + i)" - 1 i(1+i)" (1+i)n-1 (1+i)n-1 i (1+i)n-1 i(1+i)n 1- i (1+i)n-1 1² (1+i)n n i(1+i)n (1+i)n-1 n i n (1+i)n-1
5. An industrial firm must pay a local jurisdiction the cost to expand its sewage treatment plant. In addition, the firm must pay $12,000 annually toward the plant operating costs. The industrial firm will pay money into a fund, which earns 5% per year, to pay its share of the plant operating costs forever. What is the amount to be paid into the fund?
Transcribed Image Text:5. An industrial firm must pay a local jurisdiction the cost to expand its sewage treatment plant. In addition, the firm must pay $12,000 annually toward the plant operating costs. The industrial firm will pay money into a fund, which earns 5% per year, to pay its share of the plant operating costs forever. What is the amount to be paid into the fund?
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