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Unformatted text preview: Determine the uniform series of payments that correspond to each condition and sketch a cash flow diagram. (a) A present worth of $500 with an interest rate of 10% and payments in periods 1 through 5. (b) A future value of $2000 in period 10 with an interest rate of 12% and payments in periods 110. (c) A future value of $5000 in period 10 with an interest rate of 5% and payments only in periods 18. Bonus Problem (5 points) Draw the cash flow diagram and solve for the present worth of the following cash flow using an interest rate of 5%. Period Cash Inflow Cash Outflow $500 $10,000 1 $1,000 $0 2 $2,000 $1,000 3 $3,000 $0 4 $4,000 $1,000 5 $3,000 $0 6 $2,000 $1,000 7 $1,000 $0 8 $1,000 $1,000 9 $1,000 $0 10 $2,000 $1,000 11 $3,000 $0 12 $4,000 $1,000 13 $3,000 $0 14 $2,000 $1,000 15 $1,000 $0...
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 Spring '08
 Lewandowski
 Future Value, cash ﬂow diagram

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