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
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
Related questions
Question
5. Use the provided chart to solve this problem.
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
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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