Determine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, i varies as indicated. Q ܗܘ ܦܢܐܘܪ ܡܐܢ P=? $2,000 i₁ = 12% 12 = 6% 1 $4,000 The present equivalent value is $ 2 13 = 10% 3 Years $2,000 i4 = 12% i5 = 10% 16 = 6% (Round to the nearest cent.) $4,000 5 Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. 6 Q

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Determine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, i, varies
as indicated.
ܘܢܝܒܠܤܢܨܒܢܝܩܕܡܢ
P=?
$2,000
$4,000
The present equivalent value is $
= 12% i2 = 6% i3 = 10% 14 = 12% is = 10% ig = 6%
2
3
Years
$2,000
. (Round to the nearest cent.)
$4,000
5
Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year.
Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year.
6
Transcribed Image Text:Determine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, i, varies as indicated. ܘܢܝܒܠܤܢܨܒܢܝܩܕܡܢ P=? $2,000 $4,000 The present equivalent value is $ = 12% i2 = 6% i3 = 10% 14 = 12% is = 10% ig = 6% 2 3 Years $2,000 . (Round to the nearest cent.) $4,000 5 Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year. 6
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