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1. The repair costs for some handheld equipment is estimated to be $120 the first year, increasing by $30 per year in subsequent years. What is the amount a person will need to deposit into a bank account, paying 4% interest, to provide for the repair costs for the next five years?

1. The repair costs for some handheld equipment is estimated to be $120 the first year, increasing by $30 per year in subsequent years. What is the amount a person will need to deposit into a bank account, paying 4% interest, to provide for the repair costs for the next five years?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. Use the provided chart to solve this problem.

factor name single payment compound amount single payment present worth uniform series sinking fund capital recovery uniform series compound amount uniform series present worth uniform gradient present worth uniform gradient future worth uniform gradient uniform series converts P to F F to P F to A P to A A to F A to P G to P G to F G to A symbol (F/P, i%, n) (P/F, 1%, n) (A/F, i%, n) (A/P, i%, n) (F/A, 1%, n) (P/A, i%, n) (P/G,i%, n) (F/G,1%, n) (A/G, i%, n) formula (1 + i)" (1 + i)-¹ i (1 + i)" - 1 i(1+i)" (1+i)n-1 (1+i)n-1 i (1+i)n-1 i(1+i)n 1- i (1+i)n-1 1² (1+i)n n i(1+i)n (1+i)n-1 n i n (1+i)n-1
Transcribed Image Text:factor name single payment compound amount single payment present worth uniform series sinking fund capital recovery uniform series compound amount uniform series present worth uniform gradient present worth uniform gradient future worth uniform gradient uniform series converts P to F F to P F to A P to A A to F A to P G to P G to F G to A symbol (F/P, i%, n) (P/F, 1%, n) (A/F, i%, n) (A/P, i%, n) (F/A, 1%, n) (P/A, i%, n) (P/G,i%, n) (F/G,1%, n) (A/G, i%, n) formula (1 + i)" (1 + i)-¹ i (1 + i)" - 1 i(1+i)" (1+i)n-1 (1+i)n-1 i (1+i)n-1 i(1+i)n 1- i (1+i)n-1 1² (1+i)n n i(1+i)n (1+i)n-1 n i n (1+i)n-1
1. The repair costs for some handheld equipment is estimated to be $120 the first year, increasing by $30 per year in subsequent years. What is the amount a person will need to deposit into a bank account, paying 4% interest, to provide for the repair costs for the next five years?
Transcribed Image Text:1. The repair costs for some handheld equipment is estimated to be $120 the first year, increasing by $30 per year in subsequent years. What is the amount a person will need to deposit into a bank account, paying 4% interest, to provide for the repair costs for the next five years?
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