a. In what year will there be no payment? b. What is the present worth of all payment? c. What is the equivalent annual payment?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Draw the cashflow diagram and solve using the formula

4. Given the series of payments at the end of each year. i = 6%
Year 1
90,000
85,000
Year 2
Year 3
80,000
a. In what year will there be no payment?
b. What is the present worth of all payment?
c. What is the equivalent annual payment?
Ans. 19, P 597,699.71, P 53,566.36
Transcribed Image Text:4. Given the series of payments at the end of each year. i = 6% Year 1 90,000 85,000 Year 2 Year 3 80,000 a. In what year will there be no payment? b. What is the present worth of all payment? c. What is the equivalent annual payment? Ans. 19, P 597,699.71, P 53,566.36
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