Present-value equivalent-geometrically increasing series

Assignment Help Business Economics

Reference no: EM13853346

Find the present-value equivalent to the following geometrically increasing series of payments.

(PLEASE show work starting with formula used.)

a. A first-year base of $4,000 increasing at 4% per year to year 15 at an interest rate of 17% compounded continuously. Answer: $23,659

b. A first-year base of $100 increasing at 10% per year to year 12 at an interest rate of 6% compounded continuously.

c. A first-year base of $7,000 increasing at 7% per year to year 20 at an interest rate of 19% compounded continuously.

Reference no: EM13853346

Questions Cloud

What was the percentage change in per capita real GDP : In 2016, a nation's population was 10 million, its real GDP was $1.21 billion, and its GDP deflator had a value of 121. By 2017, its population had increased to 12 million, its real GDP had risen to $1.5 billion, and its GDP deflator had a value of 1..

Why does unix need to use a state to represent a process : Why does UNIX need to use a state to represent a process that no longer exists? How is the Zombie state used? Is the Zombie state really useful?

Compute the price elasticity of demand for cars : Between 2011 and 2012, the quantity of cars produced and sold decreased by 20%. During the same period, the price of cars increased by 5% and the cost of gasoline increased by 20%. We know that the cross elasticity of demand of gasoline is -0.3. Comp..

Write a formal business proposal for an entirely new annual : Research an annual report of a company of your choice that deals with a subject you are interested in learning more about. Pretend that you are hired to be in charge of next year's annual report publication. Use your creativity to decide on a new the..

Present-value equivalent-geometrically increasing series : Find the present-value equivalent to the following geometrically increasing series of payments.

Find the equal annual payment series : Find the equal annual payment series that would be equivalent to the following increasing series of payments if the interest rate is 12%.

Find a current event dealing with the uniform computer : Find a current event dealing with the Uniform Computer Information Transactions Act (UCITA). Give your opinion on how the Act affects the event and how it should be applied. Use an outside source, such as a trade magazine, a book on the topic, or an ..

Present value of the series of prospective payments : What is the present value of the following series of prospective payments?

Affect the canadian market supply curve for corn : How would each of the following affect the Canadian market supply curve for corn?

User Account

All Pages