Question

#2.87 is this asking for the annunity?

Year Year 0 Cash flow, $ 200 200 200 Cash flow, $ 200 200 200 200 CF3 b. Use a spreadsheet to find CF3. 2.87 Some studies have shown that taller men tend to earn higher salaries than equally qualified men of shorter stature. Homotrope growth hormone can increase a child's height at a cost of $50,000 per inch. Clyde's parents wanted him to be 3" taller than he was projected to be. They paid $50,000 per year for the treatments for three years beginning on their son's 8th birthday. How much extra money would Clyde have to earn per year from his 26th through 60th birthdays (a total of 35 years) in order to justify their expenditure? Use i = 8% per year.

Answer 1

Solution base know that _ER_A LL+i)n. 1 | Thil egn is used for calculating the future beletten Whelal A Annual payment لحلهمعلمنحلميل لمسططم=ن 7 ܛܣܩܫܣܛܓܕܢܠܥܩܣܢܡ - h I we also know that FEALFA,ns in the standard notation ܢܣܩܩܪܳܛܢ ܘܩܩܦܩܫܓ ܛܝܫܚܠܝܡܝܠ ܝܠܝܩܩܬܢܝܝܣܢܓܩܥܢܩܦ the compound interest fantor table Too mula for calculatiner future Woerthe__ __ F = P Litijk wiecie po principal amount n = humble of peory and i = annual bate of interest ftondeed notation equation FERLEl Reint folienne the value of the faster is seen in the compel. latusta fratos table? The futuo momey e needs to enam kena to justify ! thentment 206+ ib A. Nolet Calculatte A 500.00 LELA,81,37 ELP, 87_,16) = ALRA.184354 = 50000 13.2464) 13.4259) = A (1165451 A = 556,092.09 1.6545 LA = $43714:8| This is required ansten.