For the given cash flow, if the equivalentuniform annual payments is $2000 andthe interest rate is 4% per year.End of23YearCost2A ZA+30 ZA+50 ZA+90 ZA+120 ZA+150 2A+180 ZA+210 2A+240Determine the amount of (A) ?Determine the equivalent present value?

Uniform annual payment = $2000 i = 4% = 0.04 Period = 9 years Future value of annuity is calculated…

For the given cash flow, if the equivalent uniform annual payments is $2000 and the interest rate is 4% per year. End of Year Cost 2A 2A+30 ZA+60 JA+90 2A+120 ZA+150 2A+180 ZA+210 2A+240 Determine the amount of (A) ? Determine the equivalent present value?

For the given cash flow, if the equivalent uniform annual payments is $2000 and the interest rate is 4% per year. End of Year Cost 2A 2A+30 ZA+60 JA+90 2A+120 ZA+150 2A+180 ZA+210 2A+240 Determine the amount of (A) ? Determine the equivalent present value?

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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Question

For the given cash flow, if the equivalent
uniform annual payments is $2000 and
the interest rate is 4% per year.
End of
2
3
Year
Cost
2A ZA+30 ZA+50 ZA+90 ZA+120 ZA+150 2A+180 ZA+210 2A+240
Determine the amount of (A) ?
Determine the equivalent present value?

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