Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000. Cash flows in this series will increase by 7% each period. There are a total of nine cash flows in this series. What is the future equivalent of this cash flow series at time = 20 if the interest rate is 10% per period?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Explain, Engineering Econ

TABLE C-13 Discrete Compounding; i = 10%
Single Payment
N
12345
5
67890 H2BAS SEKRE
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
30
35
40
45
50
60
Compound Present
Worth
Amount
Factor
Factor
80
To Find F
Given P
F/P
1.1000
1.2100
1.3310
1.4641
1.6105
1.7716
1.9487
2.1436
2.3579
2.5937
2.8531
3.1384
3.4523
3.7975
4.1772
4.5950
5.0545
5.5599
6.1159
6.7275
7.4002
8.1403
8.9543
9.8497
10.8347
304.4816
2048.4002
100 13780.6123
80
17.4494
28.1024
45.2593
72.8905
117.3909
"Less than 0.0001.
To Find P
Given F
P/F
0.9091
0.8264
0.7513
0.6830
0.6209
0.5645
0.5132
0.4665
0.4241
0.3855
0.3505
0.3186
0.2897
0.2633
0.2394
0.2176
0.1978
0.1799
0.1635
0.1486
0.1351
0.1228
0.1117
0.1015
0.0923
0.0573
0.0356
0.0221
0.0137
0.0085
0.0033
0.0005
0.0001
Compound
Amount
Factor
To Find F
Given A
F/A
1.0000
2.1000
3.3100
4.6410
6.1051
7.7156
9.4872
11.4359
13.5795
15.9374
18.5312
21.3843
24.5227
27.9750
31.7725
35.9497
40.5447
45.5992
51.1591
57.2750
64.0025
71.4027
79.5430
88.4973
98.3471
164.4940
271.0244
442.5926
718.9048
1163.9085
3034.8164
20474.0021
137796.1234
Uniform Series
Present
Worth
Factor
To Find P
Given A
P/A
0.9091
1.7355
2.4869
3.1699
3.7908
4.3553
4.8684
5.3349
5.7590
6.1446
6.4951
6.8137
7.1034
7.3667
7.6061
7.8237
8.0216
8.2014
8.3649
8.5136
8.6487
8.7715
8.8832
8.9847
9.0770
9.4269
9.6442
9.7791
9.8628
9.9148
9.9672
9.9951
9.9993
10.0000
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4762
0.3021
0.2155
0.1638
0.1296
0.1054
0.0874
0.0736
0.0627
0.0540
0.0468
0.0408
0.0357
0.0315
0.0278
0.0247
0.0219
0.0195
0.0175
0.0156
0.0140
0.0126
0.0113
0.0102
0.0061
0.0037
0.0023
0.0014
0.0009
0.0003
a
a
Capital
Recovery
Factor
To Find A
Given P
A/P
1.1000
0.5762
0.4021
0.3155
0.2638
0.2296
0.2054
0.1874
0.1736
0.1627
0.1540
0.1468
0.1408
0.1357
0.1315
0.1278
0.1247
0.1219
0.1195
0.1175
0.1156
0.1140
0.1126
0.1113
0.1102
0.1061
0.1037
0.1023
0.1014
0.1009
0.1003
0.1000
0.1000
0.1000
Uniform Gradient
Gradient
Gradient
Present Worth Uniform Series
Factor
To Find A
Given G
A/G
Factor
To Find P
Given G
P/G
0.000
0.826
2.329
4.378
6.862
9.684
12.763
16.029
19.422
22.891
26.396
29.901
33.377
36.801
40.152
43.416
46.582
49.640
52.583
55.407
58.110
60.689
63.146
65.481
67.696
77.077
83.987
88.953
92.454
94.889
97.701
99.561
99.920
0.0000
0.4762
0.9366
1.3812
1.8101
2.2236
2.6216
3.0045
3.3724
3.7255
4.0641
4.3884
4.6988
4.9955
5.2789
5.5493
5.8071
6.0526
6.2861
6.5081
6.7189
6.9189
7.1085
7.2881
7.4580
8.1762
8.7086
9.0962
9.3740
9.5704
9.8023
9.9609
9.9927
N
12345
6
7
9
10
PARAS PARAS 42 288
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
30
35
40
45
50
60
80
100
Transcribed Image Text:TABLE C-13 Discrete Compounding; i = 10% Single Payment N 12345 5 67890 H2BAS SEKRE 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 60 Compound Present Worth Amount Factor Factor 80 To Find F Given P F/P 1.1000 1.2100 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 7.4002 8.1403 8.9543 9.8497 10.8347 304.4816 2048.4002 100 13780.6123 80 17.4494 28.1024 45.2593 72.8905 117.3909 "Less than 0.0001. To Find P Given F P/F 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 0.2176 0.1978 0.1799 0.1635 0.1486 0.1351 0.1228 0.1117 0.1015 0.0923 0.0573 0.0356 0.0221 0.0137 0.0085 0.0033 0.0005 0.0001 Compound Amount Factor To Find F Given A F/A 1.0000 2.1000 3.3100 4.6410 6.1051 7.7156 9.4872 11.4359 13.5795 15.9374 18.5312 21.3843 24.5227 27.9750 31.7725 35.9497 40.5447 45.5992 51.1591 57.2750 64.0025 71.4027 79.5430 88.4973 98.3471 164.4940 271.0244 442.5926 718.9048 1163.9085 3034.8164 20474.0021 137796.1234 Uniform Series Present Worth Factor To Find P Given A P/A 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 8.6487 8.7715 8.8832 8.9847 9.0770 9.4269 9.6442 9.7791 9.8628 9.9148 9.9672 9.9951 9.9993 10.0000 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4762 0.3021 0.2155 0.1638 0.1296 0.1054 0.0874 0.0736 0.0627 0.0540 0.0468 0.0408 0.0357 0.0315 0.0278 0.0247 0.0219 0.0195 0.0175 0.0156 0.0140 0.0126 0.0113 0.0102 0.0061 0.0037 0.0023 0.0014 0.0009 0.0003 a a Capital Recovery Factor To Find A Given P A/P 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315 0.1278 0.1247 0.1219 0.1195 0.1175 0.1156 0.1140 0.1126 0.1113 0.1102 0.1061 0.1037 0.1023 0.1014 0.1009 0.1003 0.1000 0.1000 0.1000 Uniform Gradient Gradient Gradient Present Worth Uniform Series Factor To Find A Given G A/G Factor To Find P Given G P/G 0.000 0.826 2.329 4.378 6.862 9.684 12.763 16.029 19.422 22.891 26.396 29.901 33.377 36.801 40.152 43.416 46.582 49.640 52.583 55.407 58.110 60.689 63.146 65.481 67.696 77.077 83.987 88.953 92.454 94.889 97.701 99.561 99.920 0.0000 0.4762 0.9366 1.3812 1.8101 2.2236 2.6216 3.0045 3.3724 3.7255 4.0641 4.3884 4.6988 4.9955 5.2789 5.5493 5.8071 6.0526 6.2861 6.5081 6.7189 6.9189 7.1085 7.2881 7.4580 8.1762 8.7086 9.0962 9.3740 9.5704 9.8023 9.9609 9.9927 N 12345 6 7 9 10 PARAS PARAS 42 288 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 60 80 100
Consider a geometric series of cash flows that begins
at time 5 with a cash flow of $5,000. Cash flows in
this series will increase by 7% each period. There are
a total of nine cash flows in this series. What is the
future equivalent of this cash flow series at time = 20
if the interest rate is 10% per period?
Transcribed Image Text:Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000. Cash flows in this series will increase by 7% each period. There are a total of nine cash flows in this series. What is the future equivalent of this cash flow series at time = 20 if the interest rate is 10% per period?
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