Example 1.4: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 S2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of 42 $3000 per year for the following 3 years. How would the cash flow diagram appearif i 8.5% per year?, assume the present worth equal $10,000 find the Future. Example 1.4: An electrical engineerwants to deposit an amount P now suchthat she can withdraw an equal annualamount of A1 S2000 per year for the first5 years, starting 1 year after the deposit,and a different annual withdrawal of 42$3000 per year for the following 3 years.How would the cash flow diagramappearif i 8.5% per year?, assume thepresent worth equal $10,000 find theFuture.

Future worth is the value of money expected to be in future.

Answered: Example 1.4: An electrical engineer…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 13E

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Example 1.4: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 S2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of 42 $3000 per year for the following 3 years. How would the cash flow diagram appearif i 8.5% per year?, assume the present worth equal $10,000 find the Future.

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