Assume you were asked to prepare a table of compound interest factor values (like those in the back of this book) used in calculating the present worth of a geometric gradient series. Determine the two values for n = 1 and 2 for an interest rate of 10% per year and a rate of change g of 5% per year.
What will be an ideal response?
Find (P/A,g,i,n) using Equation [2.32] and A1 = 1
For n = 1: Pg = 1*{1 – [(1 + 0.05)/(1 + 0.10)]1}/(0.10 – 0.05)
= 0.90909
For n = 2: Pg = 1*{1 – [(1 + 0.05)/(1 + 0.10)]2}/(0.10 – 0.05)
= 1.77686
You might also like to view...
1. A board foot is a unit of measurement for lumber equal to:
a. 1-in ´ 12-in ´ 12-in c. 3-in ´ 12-in ´ 12-in b. 2-in ´ 12-in ´ 12-in d. 4-in ´ 12-in ´ 12-in
To estimate the amount of material needed for ____, multiply the total linear feet of wall by three and then add 5 percent for waste in cutting.
a.exterior wall studs b.wall sheathing c.ceiling joists d.plates
When a change is made to a print and a revision letter is placed next to the change, the letters ____ are not used.
A. I, O, S, Q, T B. Z, B, Q, O, X C. X, O, S, I, B D. C, O, B, I, S E. none of the above
Four-wheel drive vehicles use two drive shafts, one to drive the front wheels and the other to drive the rear wheels.
Answer the following statement true (T) or false (F)