04 ModelHW4 - A I F N (in years) $2,000.00 7% $30,000.00...

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A  $2,000.00  I 7% F  $30,000.00  N (in years) 10.61 Rounds off to 11 years F = A × 1 + i ( 29 N - 1 i F × i A + 1 = 1 + i ( 29 N ln F × i A + 1 = ln 1 + 1 ( 29 × N N = ln F × i A + 1 ln 1 + 1 ( 29 N = 10.6097
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interest 10% YEARS 0  $200.00  1  $150.00  2  $100.00  3  $100.00  4  $150.00  5  $200.00  0  $200.00  1  $136.36  2  $82.64  3  $75.13  4  $102.45  5  $124.18  PV =  $720.78  P 1 = $200 + 150( P / F ,10%,1) + $100( P / F ,1 + 150( P / F ,10%,4) + 200( P / AF 10%,5) P 1 = $720.78 $720.78 = A × 1 + 0.1 ( 29 5 - 1 0.1 × 1 + 0.1 ( 29 5 A = $720.78 3.7908 A = $190.14
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,10%,2) + 100( P / F ,10%,3)
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Formula - calculation   14.87 rounds off to 15% F = P 1 + i ( 29 N F = 2 P 2 P = P 1 + i ( 29 N 2 = 1 + i ( 29 5 2 5 = 1 + i i 15%
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j = number of products per year F 1 = P 1 + i ( 29 N F 1 = $10,000,000 × (1.12) 5 F 1 $17,623,416
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This note was uploaded on 05/12/2010 for the course BUSINESS BS515 taught by Professor Johnson during the Fall '09 term at Drexel.

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04 ModelHW4 - A I F N (in years) $2,000.00 7% $30,000.00...

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