ENG106W12_HW2-solution

# ENG106W12_HW2-solution - ENG 106 Homework#2 solution Time...

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ENG 106 Homework #2 solution Winter 20 12 Time Value of Money (continued): 2.32d What is the present worth of \$9000 at the end of each year for 30 years at 8.75% interest compounded annually? (use equation 2.10, because appendix B doesn't have i= r= 8.75%) I : \$1000 a year, : Over 30 years 2.36 Five annual deposits in the amounts of \$1,200, \$1,000, \$800, \$600 and \$400 are made into a fund that pays interest at a rate of 9% compounded annually. Determine the amount in the fund immediately after the fifth deposit. F = \$1200 (FIA, 9%, 5) - \$200 (FIG, 9%, 5) = \$1200 (FIA, 9%,5) - \$200 (PIG, 9%, 5) (FIP, 9%, 5) = \$4,993.4 1 2.38 What is the equal-payment series for 10 years that is equivalent to a payment series starting with \$15,000 at the end of the first year, and decreasing by \$3,000 each year over 10 years? Interest is 9% compounded annually. (answer: \$3606.60) Find an [equal-payment series] = [gradient series] A = 15000 - G (AIG. I, N) = 15000 - 3000 (AIG, 9%. 10) = 3,606.6 A = 15000

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ENG106W12_HW2-solution - ENG 106 Homework#2 solution Time...

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