Question
Calculate the present worth
o per year 20 200 200 Но。 So 100 120 l40
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Answer #1

As all the arrows are going below the line so it is take. N as Disbursement(going out of money).

So present worth= Future worth divide by (1+i)^n.

n is the no of year.

Present worth= 400+ (200/(1+.1)^1)+ (200/(1+.1)^2)+0+(20/(1+.1)^4)+(40/(1+.1)^5)+(60/(1+.1)^6)+(80/(1+.1)^7)+(100/(1+.1)^8)+(120/(1+.1)^9)+(140/(1+.1)^10)

Present worth= 400+181.818+165.289+0+13.66+24.836+33.868+41.052+ 46.650+50.891+53.976

Present worth = 1012.04 (answer)

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