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Giving the following cash flow diagram. Find the future worth using an interest rate of 10% per quarter. 0 1 2 3 4 $40 $40 $40 5 6 7 8 Years $70 $70 $70

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5. Giving the following cash flow diagram. Find the future worth using an interest rate of
10% per quarter.
0 1 2 3 4
$40 $40 $40
5
6 7 8
$70 $70 $70
Years

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Step 2: Determine the effective rate of interest per year:

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