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Cash
Flow Analyzer
Solved Examples |
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Single Payment
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How much
should you put into a bank saving account now in order to have
$50,000 in 10 years? Assuming the interest rate will stay at 5% in
the next 10 years.
Single
Payment
Given: F, n, i
F=50000
n=10
i=0.05
Find
P=30695.66
Answer: You need to put $30,695.66 into the saving account now.
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Uniform Series
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The
annual maintenance cost for a machine is $500. The machine's
expected life is 15 years. What is the present worth of the
maintenance costs over the life of the machine if the interest rate
is 6%?
Uniform
Series
Given: A, i, n
A=500
i=0.06
n=15
Find
P=4856.12
Answer: The present worth of the maintenance costs over the life of
the machine is $4856.12.
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Gradient Series
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You have
bought a new machine, the annual maintenance cost is $50 more than
the previous year. The 1st year maintenance cost is zero, what is
the present worth of 5 years of maintenance costs? Assuming interest
rate of 10%.
Gradient
Series
Given: G, i, n
G=50
i=0.10
n=5
Find
P=343.09
Answer: The present worth of the maintenance costs is $343.09. |
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