Question: 3, ( a ) The interest rate is 6%. An expense increases each year by 400 dollars. This goes on for 30 years. What is
3, ( a ) The interest rate is 6%. An expense increases each year by 400 dollars. This goes on for 30 years. What is the equivalent uniform series that yields the same economic effecet when calculating a present worth or future worth. State and use any reasonable assumptions you are making if needed. ( You can assume no expense at t-0) (b )What is the Present Worth of this series in part ( a) (c) What is the Future Worth (d) A deposit of 10,000 is made at t-0. For the first five years the interest is compounded at a rate of 6% per year. Starting at the beginning of year six the money is transferred to an account with 10% compounded annually. What is the amount in the account after 12 years if no other deposits or withdrawals are made? Show the intermediate calculations and method used for full credit
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