Find the annual worth (AW) of the following investments (from year 1 to year 20) if you invest $600per year in years 6 to 12; and then increase the investment by $200 per year from year 13 to year 20[i.e., cash flow in year 13 becomes $800, in year 14 becomes $1,000, ... etc.]. The interest rate is 10%per year.i 10%P/FA/PA/FP/G(F/P,i,n) = (1 + i)"10.90911.10001.00000.00020.82640.57620.47620.826(1 + i)" –1i(1 + i)"30.75130.40210.30212.329(P/A,i,n) =40.68300.31550.21554.3780.62090.26380.16386.86260.56450.22960.12969.684(1 + i)" –1i70.51320.20540.105412.763(F/A,i,n) =80.46650.18740.087416.029%3D90.42410.17360.073619.421100.38550.16270.062722.89126.39629.901(1 + i)" – in – 1(1 + i)"110.35050.15400.0540(P/G,i,n) = -%3D120.31860.14680.0468130.28970.14080.040833.377140.26330.13570.035736.800(A/G.im) = } -+ -1150.23940.13150.031540.152n(1 + i)" – 1160.21760.12780.027843.416170.19780.12470.024746.582180.17990.12190.021949.6400.11950.1175190.16350.019552.5831+ii- 8200.14860.017555.407g#iP =A,8 = i

Find the annual worth (AW) of the following investments (from year 1 to year 20) if you invest $600 per year in years 6 to 12; and then increase the investment by $200 per year from year 13 to year 20 [i.e., cash flow in year 13 becomes $800, in year 14 becomes $1,000, ... etc.]. The interest rate is 10% per year. i = 10% A/P n P/F A/F P/G (F/P.i,n) = (1 + i)y" 1 0.9091 1.1000 1.0000 0.000 2 0.8264 0.5762 0.4762 0.826 3 0.7513 0.4021 0.3021 2.329 (1 + i)" –1 - (P/A,i,n) = 4 0.6830 0.3155 0.2155 4.378 i(1 + i)" 0.6209 0.2638 0.1638 6.862 6 0.5645 0.2296 0.1296 9.684 0.1054 0.0874 7 0.5132 0.2054 12.763 (1 + i)" –1 (F/A,i,n)= 8 0.4665 0.1874 16.029 i 0.4241 0.1736 0.0736 19.421 10 0.3855 0.1627 0.0627 22.891 (1 + і)" — in — 1 (1 + i)" 11 0.3505 0.1540 0.0540 26.396 - (P/G.i,n) = 12 0.3186 0.1468 0.0468 29.901 13 0.2897 0.1408 0.0408 33.377 14 0.2633 0.1357 0.0357 36.800 (A /Gim) = | 15 0.2394 0.1315 0.0315 40.152 (1 + i)" – 1 16 0.2176 0.1278 0.0278 43.416 17 0.1978 0.1247 0.0247 46.582 49.640 52.583 18 0.1799 0.1219 0.0219 1+g -liti 19 0.1635 0.1195 0.0195 20 0.1486 0.1175 0.0175 55.407 8#i i-8 8 = i

Find the annual worth (AW) of the following investments (from year 1 to year 20) if you invest $600 per year in years 6 to 12; and then increase the investment by $200 per year from year 13 to year 20 [i.e., cash flow in year 13 becomes $800, in year 14 becomes $1,000, ... etc.]. The interest rate is 10% per year. i = 10% A/P n P/F A/F P/G (F/P.i,n) = (1 + i)y" 1 0.9091 1.1000 1.0000 0.000 2 0.8264 0.5762 0.4762 0.826 3 0.7513 0.4021 0.3021 2.329 (1 + i)" –1 - (P/A,i,n) = 4 0.6830 0.3155 0.2155 4.378 i(1 + i)" 0.6209 0.2638 0.1638 6.862 6 0.5645 0.2296 0.1296 9.684 0.1054 0.0874 7 0.5132 0.2054 12.763 (1 + i)" –1 (F/A,i,n)= 8 0.4665 0.1874 16.029 i 0.4241 0.1736 0.0736 19.421 10 0.3855 0.1627 0.0627 22.891 (1 + і)" — in — 1 (1 + i)" 11 0.3505 0.1540 0.0540 26.396 - (P/G.i,n) = 12 0.3186 0.1468 0.0468 29.901 13 0.2897 0.1408 0.0408 33.377 14 0.2633 0.1357 0.0357 36.800 (A /Gim) = | 15 0.2394 0.1315 0.0315 40.152 (1 + i)" – 1 16 0.2176 0.1278 0.0278 43.416 17 0.1978 0.1247 0.0247 46.582 49.640 52.583 18 0.1799 0.1219 0.0219 1+g -liti 19 0.1635 0.1195 0.0195 20 0.1486 0.1175 0.0175 55.407 8#i i-8 8 = i

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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