Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:3. Using an interest rate of 8% per year
compounded annually and two gradients
series, convert the following cash flows to
a. Present value amount (P) b. Annual
equivalent amount (A) c. Future sum at
the end of the sequence (F) EOY
0 1 2 3 4 5 6 7 8 9 10 Amount
2000 1800 1600 1400 1200 1000 900 800*
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