Question: 02.05-PR032 An easy payment plan offered by a local electronics store for your new audio system calls for end-of-year payments of $2,000, $2,500, $3,000, and
02.05-PR032 An easy payment plan offered by a local electronics store for your new audio system calls for end-of-year payments of $2,000, $2,500, $3,000, and
$3,500 at the ends of years 1 through 4 respectively. Your money is well invested and earns a consistent 10% per year.
a. What is the present worth of these payments?
b. If you prefer to make equal annual payments having the same present worth, how much would they be?
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