With total yearly payments of $10,000 for 10 years, compare the compound amount accumu- lated at the end of the 10 years if the payments are (1) at the end of the year, (2) weekly, and (3) continuous. The effective (annual) interest rate is 8 percent, and the payments are uniform. Also determine the present worth at time zero for each of the three types of payments. (correction: nominal interest rate is 8%)

With total yearly payments of $10,000 for 10 years, compare the compound amount accumu- lated at the end of the 10 years if the payments are (1) at the end of the year, (2) weekly, and (3) continuous. The effective (annual) interest rate is 8 percent, and the payments are uniform. Also determine the present worth at time zero for each of the three types of payments. (correction: nominal interest rate is 8%)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7-3
With total yearly payments of $10,000 for 10 years, compare the compound amount accumu-
lated at the end of the 10 years if the payments are (1) at the end of the year, (2) weekly, and
(3) continuous. The effective (annual) interest rate is 8 percent, and the payments are uniform.
Also determine the present worth at time zero for each of the three types of payments.
(correction: nominal interest rate is 8%)

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