This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: not play a roll in whether they earn interest, so we will assume compound interest from now on. Equivalent Cash Flows Interest, i = 7% Single flow at beginning, EOY n Begin Balance ($), CF + B n1 Interest ($), I n = i * (CF + B n1 ) Cash Flow ($), CF End Balance ($), B n = B n1 + I n 0 1000 1000 1 2 Sum = Multiple flows at different times, EOY n Begin Balance ($), CF + B n1 Interest ($), I n = i * (CF + B n1 ) Cash Flow ($), CF End Balance ($), B n = B n1 + I n 0 1 600 2 503 Sum = Comparison of Uneven Payment Series using Present Worth Interest, i = 7% Single flow at beginning, PW = $1000 Multiple flows at different times, EOY n Cash Flow ($), CF Present Worth ($), P 0 0 1 600 2 503 Sum =...
View
Full
Document
This note was uploaded on 01/12/2012 for the course ENG 73689 taught by Professor Ralphaldredge during the Winter '10 term at UC Davis.
 Winter '10
 RalphAldredge

Click to edit the document details