Question: For the cash flows shown below, determine (a) the future worth in year 6 and (b) the equivalent Annual value for years 0 through
For the cash flows shown below, determine (a) the future worth in year 6 and (b) the equivalent Annual value for years 0 through 12. (Use gradient and annual equivalent series formulas in calculations) X=1, Y=0 Cash Flow S/yr -50000 6000 Year 0 1-2 3-5 6 7 8 9 10 11-12 6000 5500 6000 6500 7000 7500 8000 Interest ratio Monthly effective interest rate (2+X*0,1)% (7+Y)% per year, compounded quarterly Effective interest rate for 24 months (12+X)%
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a Future Worth in Year 6 Using the gradient formula F X 1 in n 1 in1 i Given X 1 i 7Y 7 n 7 Subst... View full answer
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