Question

a student invest a monthly payment, first payment is $10 and second payment is $150, find future equivalence in second paidi (i=1%) Select one: a. P: $150(P/F,1%,1)+$10 b. P: $150(F/P.1%,1)+$10 (P/F,1%,1) C. F: $10 (F/P.1%,1)+$150 (P/F,1%,1) d. F: $10 (F/P.1%,1)+$150 Finish attempt

Answer 1

Given,

First payment = $10

Second(Last) Payment = $150

Interest rate during this period = 1%

The future equivalent of the given payment series is the first payment discounted to the period of the second payment and added to the second payment value.

Future worth at the time of second payment = $10 (F/P, 1%, 1) + $150

Ans: d. $10 (F/P, 1%, 1) + $150