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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![7-3
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc35fb71-2a15-4f2c-a939-a31a62ea8fb5%2F28e3d74b-0aec-42f3-9a41-5ac29316b1aa%2F8gi0rp7_processed.png&w=3840&q=75)
Transcribed Image Text: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.
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