Question

How much money would be accumulated 12 years from now from deposits of $15,000 per year for 5 consecutive years, starting 4 years from now, if the interest rate is 10% per year.

The amount that would be accumulated is determined to be $ .

Engineering Economy 8th edition Leland Blank Anthony Tarquin

Answer 1

this is the correct answer and method.

TUU rate : 10% per annum Interest . Deposits = $15,000 вашF value. P, де нави ч X cash Plow oч Гdau4 DU 2 OF C, 8%, 5) pv = 15000 ((+6)= 1) Excitijs e 15000 ((1+0.15.) 0.1 x C1-) 5 = 15000x0.61 - $ 56,879-8) 0.161 future value for next years fu - pv (+i)" fus 56,849.81 (It Oul)? fu? 66,879.81 x 2.35 fu 2$134,119.6) Accumulated money, after 12 years $134, 119.6)

Given The eate = 10% peur year that, int cuest present value pusfittoet ei target Where - (f = cash flow r= interest reale n= time in years So. deposits of $15,000 per year for 5 consecutive years, et ceuting 4 years from now wifen interest rate of 10% per year. IS000 + 1500 (1 +0.1)* (Tro.nje (1+0.1j Pu= 15000 15 000 - CitoJ5 C1+0.16 $9313.81 +84671 10 +$7,697.3+ ++$6997.6 +6361.45 pus $ 38,837.34 future value after 12 years from now fuz Pucitron Liv 2 38,837.34 (1+0.1) = 38,837.34%C11)"2 = 38,857.34 X 3.13 ? $121, 560.87... Accumulated money after 12 years from now is $121,560.85