Problem 2 In an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8% compounded quarterly for 6 years. 1. Compute the value of the capital recovery factor. 2. Compute the value of the sinking fund factor. 3. Compute the value of the present worth factor. Ans. 1. 0.052871 2. 0.032871 3. 18.914
Problem 2 In an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8% compounded quarterly for 6 years. 1. Compute the value of the capital recovery factor. 2. Compute the value of the sinking fund factor. 3. Compute the value of the present worth factor. Ans. 1. 0.052871 2. 0.032871 3. 18.914
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 20E
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In an ordinary
Ans. 1. 0.052871 2. 0.032871 3. 18.914
Transcribed Image Text:Problem 2
In an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8%
compounded quarterly for 6 years.
1. Compute the value of the capital recovery factor.
2. Compute the value of the sinking fund factor.
3. Compute the value of the present worth factor.
Ans.
1. 0.052871
2. 0.032871
3. 18.914
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