What equivalent annual equal payment series is necessary to repay a uniform gradient series of 9 end-of- year payments, assuming that this gradient series begins at $6,000 and decreases at the rate of $200 per year? The interest rate is 10 % per year compounded annually. *

What equivalent annual equal payment series is necessary to repay a uniform gradient series of 9 end-of- year payments, assuming that this gradient series begins at $6,000 and decreases at the rate of $200 per year? The interest rate is 10 % per year compounded annually. *

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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Operating Cash Flows

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Solve this question but correctly.

What equivalent annual equal
payment series is necessary to repay
a uniform gradient series of 9 end-of-
year payments, assuming that this
gradient series begins at $6,000 and
decreases at the rate of $200 per
year? The interest rate is 10 % per year
compounded annually. *

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