Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
5. Please use the formula provided to answer the problem
Transcribed Image Text:Determine the equal payment series future worth
factor of an annuity of P15,000 per year for 25 years
at 18% interest annually.
Add your answer
![Legend:
Cc - Capitalized Cost (Currency)
Fc - First Cost (Currency)
Mc - maintenance Cost (Currency)
Rc - Replacement Cost (Currency); if no Re: Re Fe
Sy- Salvage Value (Curency); if no Sy: Sy = 0
A - Periodic Amount (Currency)
F-Future Value (Currency)
G - Periodic Amount Increment Amount (Currency)
P - Present Value (Currency)
g - Periodic Amount Increment Rate (Persentage)
i-Nominal Interest Rate (Percent)
m - Number of Periods per Year (Number)
r - Effective Interest Rate (Percent)
t-Number of Years (Number)
Formulae:
Compounding Transformation (i, (m₂)→ 1₂ (m₂)): (1 + ) = (1 +)**
Perpetuity (t=00):
Ordinary Annuity (Payment at End of Period):
P=A1-(1+1)-²)
Arithmetic Gradient:
Geometric Gradient:
Capitalized Cost:
n = mt
Annuity Due (Payment at Beginning of Period):
r=-
m
F = P(1+r)"
P = F(1+r)-R
F=A
F=A
= A ((1+r)^²-1)
F=
P=A (1-(1+r)^)(1+r)
= A (¹ + r)² - 1) (1 + r)
T
FA[(1+r)-1]G[-nr + (1+r)" - 1]
T
r2
A[(1+r)"-(1+g)"]
T-9
Rc-Sv
Cc=Fc++ (1+r)"-1
A = Cer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7053b554-3a97-4d68-beed-d147b9a2b76e%2F26d3ef00-daf8-4a31-a9e5-d86f3052acbc%2Fbgwrbnm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Legend:
Cc - Capitalized Cost (Currency)
Fc - First Cost (Currency)
Mc - maintenance Cost (Currency)
Rc - Replacement Cost (Currency); if no Re: Re Fe
Sy- Salvage Value (Curency); if no Sy: Sy = 0
A - Periodic Amount (Currency)
F-Future Value (Currency)
G - Periodic Amount Increment Amount (Currency)
P - Present Value (Currency)
g - Periodic Amount Increment Rate (Persentage)
i-Nominal Interest Rate (Percent)
m - Number of Periods per Year (Number)
r - Effective Interest Rate (Percent)
t-Number of Years (Number)
Formulae:
Compounding Transformation (i, (m₂)→ 1₂ (m₂)): (1 + ) = (1 +)**
Perpetuity (t=00):
Ordinary Annuity (Payment at End of Period):
P=A1-(1+1)-²)
Arithmetic Gradient:
Geometric Gradient:
Capitalized Cost:
n = mt
Annuity Due (Payment at Beginning of Period):
r=-
m
F = P(1+r)"
P = F(1+r)-R
F=A
F=A
= A ((1+r)^²-1)
F=
P=A (1-(1+r)^)(1+r)
= A (¹ + r)² - 1) (1 + r)
T
FA[(1+r)-1]G[-nr + (1+r)" - 1]
T
r2
A[(1+r)"-(1+g)"]
T-9
Rc-Sv
Cc=Fc++ (1+r)"-1
A = Cer
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education