Find the equivalent equal payment series (A) such that the two cash flows are equivalent at 7% compounded annually.

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter10: Financial Statements And Reports
Section: Chapter Questions
Problem 3.5C
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Find the equivalent equal payment series (A) such that the two cash flows are equivalent at 7% compounded annually.

(Keep 2 decimal places in numerical results) thanks 

Cash flow diagram
0
F
$50
A
0
1
A
1
$100
2
A
2
$150
Years
Years
3
A
3
$200
4
A
4
$250
5
A
5
Transcribed Image Text:Cash flow diagram 0 F $50 A 0 1 A 1 $100 2 A 2 $150 Years Years 3 A 3 $200 4 A 4 $250 5 A 5
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