Answered: What series of equal annual payments is…

What series of equal annual payments is equivalent to a series of decreasing payments as follows: $5,000, $4,000, $3,000, $2,000, $1,000 if the interest rate is 10 percent per year?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

What series of equal annual payments is equivalent to a series of decreasing payments as follows: $5,000, $4,000, $3,000, $2,000, $1,000 if the
interest rate is 10 percent per year?
Or in other words, it can be recognized as:
1-
series of this amount $
and
2- a
series of this amount $

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