Given the following series of payments: Year End-of-Year Payment 1 $1400 2 $1320 3 $1240 4...

Question

Question

Given the following series of payments: Year End-of-Year Payment 1 $1400 2 $1320 3 $1240 4 $1160 5 $1080 The future sum (i.e.

business economics

Answer 1

Answer #1

The future sum (i;e at time 5) = $7,660

The future sum (at time 5) is given by the future value of all the five payment which is given by;

The future sum (at time 5)=1400*1.1^4 + 1320*1.1^3 + 1240*1.1^2 + 1160*1.1 + 1080*1.1^0

The future sum (i;e at time 5) = $7,660

Explanation:

The future sum (at time 5) is given by the future value of all the five payment which is given by;

The future sum (at time 5)=1400*1.1^4 + 1320*1.1^3 + 1240*1.1^2 + 1160*1.1 + 1080*1.1^0

The future sum (i;e at time 5) = $7,660

Answer 2

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