Calculate the future worth (in year 11) of the following income and expenses, if the interest rate is 8% per year:Year                    Income, $                     Expense, $0                        12,000                          3,0001-6                     800                               2007-11                   900                               200

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Asked Oct 24, 2019
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Calculate the future worth (in year 11) of the following income and expenses, if the interest rate is 8% per year:

Year                    Income, $                     Expense, $

0                        12,000                          3,000

1-6                     800                               200

7-11                   900                               200

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Expert Answer

Step 1

Computation of net amount:

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A Year Income Expenditure Net 2 0 3 1 to 6 4 7 to 11 1 3,000 9,000 200600 200 700 12,000 800 900

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Step 2

Formula for the computation of net amount:

...
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B Year Income Expenditure 0 A D Net 120003000 1 to 6 800 4 7 to 11 900 -B2-C2 2 0 200 200 -B3-C3 -B4-C4

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