Professional Documents
Culture Documents
Q206 Summer 11
Q206 Summer 11
Q206 Summer 11
PASS Name:
NO PASS
F = P (1 + i)N P =A P = P =
(1+i)N 1 i(1+i)N (1+i)N iN 1 G i2 (1+i)N 1(1+g)N (1+i)N A1 ig
or P = A1
N 1+i
15
Cash Flow
14 1213 9 6 3 0 0 0 0 0 0
0 5 10
15
1718 16
19
10 5 0
15
Period
O By 1. Write an equation, in factor notation, that describes the present worth of this cash One
ow sequence.
2. Write an equivelent equation in factor notation, i.e., decompose the cash ow dierently.
3. Calculate the present worth of this series when the interest rate is 10.00%?
Answer Key
1. Answer: See Video 2. Answer: See Video 3. Answer: The present worth is 46.3138198305299