Leon and Heidi decided to invest $2,500 annually for only the first seven years of their marriage. The first payment was made at age 25. If the annual interest rate is 10%, how much accumulated interest and principal will they have at age 70? Click the icon to view the interest and annuity table for discrete compounding when /= 10% per year. The accumulated interest and principal will equal $ 975872 (Round to the nearest dollar.) Draw the cash flow diagram. Count the deposits being made to make sure you have the correct start and stop time of the series. Close - X More Info N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ******** 20 21 22 23 24 25 3.0 Single Payment Compound Amount Present Factor Worth Factor To Find F To Find P Given P Given F F/P P/F 1.1000 0.9091 1.2100 0.8264 1.3310 0.7513 0.6830 1,4641 1.6105 0.6209 0.5645 1.7716 1.9487 2.1436 2.3579 2.5937 Discrete Compounding: /-10% Compound Amount Present Factor Worth Factor To Find F To Find P Given A Given A FIA P/A 1.0000 2.1000 3.3100 4.6410 6.1051 7.7156 9.4872 2.8531 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 7.4002 8.1403 8.9543 9.8497 10.8347 17 4494 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 0.2176 0.1978 0.1799 0.1635 0.1486 0.1351 0.1228 0.1117 0.1015 0.0923 0.0573 11.4359 13.5795 45.5992 51.1591 57.2750 64.0025 71.4027 Uniform Series 15.9374 18.5312 21.3843 24.5227 6.4951 6.8137 7.1034 27.9750 7.3667 31.7725 7.6061 35.9497 7.8237 8.0216 40.5447 8.2014 8.3649 8.5136 79.5430 88.4973 98.3471 164 4940 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 8.6487 8.7715 8.8832 8.9847 9.0770 9.4769 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4762 0.3021 0.2155 0.1638 0.1296 0.1054 0.0874 0.0736 0.0627 0.0540 0.0468 0.0408 0.0357 0.0315 0.0278 0.0247 0.0219 0.0195 0.0175 0.0156 0.0140 0.0126 0.0113 0.0102 00061 Capital Recovery Factor To Find A Given P A/P 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315 0.1278 0.1247 0.1219 0.1195 0.1175 0.1156 0.1140 0.1126 0.1113 0.1102 01061, - X

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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draw the cash flow diagram please

### Text Transcription:

**Educational Scenario:**

Leon and Heidi decided to invest $2,500 annually for only the first seven years of their marriage. The first payment was made at age 25. If the annual interest rate is 10%, how much accumulated interest and principal will they have at age 70?

**Calculation Result:**

The accumulated interest and principal will equal **$975,872**. (Rounded to the nearest dollar)

**Instructions:**

Draw the cash flow diagram. Count the deposits being made to make sure you have the correct start and stop time of the series.

**Interest and Annuity Table Information:**

A table titled "Discrete Compounding; i = 10%" is included, which features financial factors for single payments and uniform series, such as:

- **Single Payment Factors**: 
  - Compound Amount Factor (F/P)
  - Present Worth Factor (P/F)

- **Uniform Series Factors**:
  - Compound Amount Factor (F/A)
  - Present Worth Factor (P/A)
  - Sinking Fund Factor (A/F)
  - Capital Recovery Factor (A/P)

**Table Data Sample (for N=1 to N=20)**:

The table lists the calculated factors for each year (N), important for determining future values and present values in financial calculations with discrete compounding at a rate of 10%. Each row corresponds to a different year N.

For example:

- When N = 1:
  - F/P = 1.1000
  - P/F = 0.9091
  - F/A = 1.0000
  - P/A = 0.9091

This information allows you to calculate future or present values based on regular payments or single sums, crucial for investment and financial planning.
Transcribed Image Text:### Text Transcription: **Educational Scenario:** Leon and Heidi decided to invest $2,500 annually for only the first seven years of their marriage. The first payment was made at age 25. If the annual interest rate is 10%, how much accumulated interest and principal will they have at age 70? **Calculation Result:** The accumulated interest and principal will equal **$975,872**. (Rounded to the nearest dollar) **Instructions:** Draw the cash flow diagram. Count the deposits being made to make sure you have the correct start and stop time of the series. **Interest and Annuity Table Information:** A table titled "Discrete Compounding; i = 10%" is included, which features financial factors for single payments and uniform series, such as: - **Single Payment Factors**: - Compound Amount Factor (F/P) - Present Worth Factor (P/F) - **Uniform Series Factors**: - Compound Amount Factor (F/A) - Present Worth Factor (P/A) - Sinking Fund Factor (A/F) - Capital Recovery Factor (A/P) **Table Data Sample (for N=1 to N=20)**: The table lists the calculated factors for each year (N), important for determining future values and present values in financial calculations with discrete compounding at a rate of 10%. Each row corresponds to a different year N. For example: - When N = 1: - F/P = 1.1000 - P/F = 0.9091 - F/A = 1.0000 - P/A = 0.9091 This information allows you to calculate future or present values based on regular payments or single sums, crucial for investment and financial planning.
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