BuyFind

Contemporary Engineering Economics...

6th Edition
Chan S. Park
Publisher: PEARSON
ISBN: 9780134105598
BuyFind

Contemporary Engineering Economics...

6th Edition
Chan S. Park
Publisher: PEARSON
ISBN: 9780134105598

Solutions

Chapter 11, Problem 6P
Textbook Problem

An annuity provides for 10 consecutive end-of-year payments of $72,000. The average general inflation rate is estimated to be 4% annually, and the market interest rate is 8% annually. What is the annuity worth in terms of a single equivalent amount of today’s dollars?

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