Consider the following cash flow. in computing F at the end of year 5 at an interest
Question:
Consider the following cash flow.
in computing F at the end of year 5 at an interest rate of 12 %, which of the following equations is incorrect?
a. F= $1,000 (F/A, 12 %,5) - $ 500 (F/P, 12 %, 50
b. F= $ 500 (F/A, 12%, 6) + $500(F/A,12%, 5)
c. F= ($500 + $ 1000(P/A,12%,5) ] X (F/P,12%,5)
d. F= ($500(A/P, 12%, 5) +1000) (F/A,12%,5)
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Year End 0 1-5 Payment $500 $1,000
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