ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Can you show the written out work for this problem please

**Future Worth Calculation of Series of Payments**

The problem here is to determine the future worth of the following series of payments using different compounding frequencies and interest rates:

a) **Semiannual Payments**: $30,000 at the end of each six-month period for five years at 8% compounded semiannually.

b) **Quarterly Payments**: $50,000 at the end of each quarter for 10 years at 6% compounded quarterly.

c) **Monthly Payments**: $13,000 at the end of each month for six years at 9% compounded monthly.

To calculate the future worth of these payments, you would use the future value of an annuity formula adapted to the specific compounding frequencies.
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Transcribed Image Text:**Future Worth Calculation of Series of Payments** The problem here is to determine the future worth of the following series of payments using different compounding frequencies and interest rates: a) **Semiannual Payments**: $30,000 at the end of each six-month period for five years at 8% compounded semiannually. b) **Quarterly Payments**: $50,000 at the end of each quarter for 10 years at 6% compounded quarterly. c) **Monthly Payments**: $13,000 at the end of each month for six years at 9% compounded monthly. To calculate the future worth of these payments, you would use the future value of an annuity formula adapted to the specific compounding frequencies.
Expert Solution
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Given

Part A

PV annuity = 30000

n = 5 years

r = 8%

 

Part B

PV annuity = 50000

n = 10 years

r = 6%

 

Part C

PV annuity = 13000

n = 6 years

r = 9%

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