TABLE C-13 Discrete Compounding; i10 Uniform Gradient Uniform Series Compound Pr
ID: 1158336 • Letter: T
Question
TABLE C-13 Discrete Compounding; i10 Uniform Gradient Uniform Series Compound Present Sinking Capital Single Payment Amount To Find F To Find P Compound Present Gradient Gradient or Amount Recovery Present Worth Uniform Series To Find F Given A To Find P Given A To Find A Given F To Find A Given P Given F Given F Given G Given G 1.0000 3.3100 6.1051 7.7156 0.0000 1.2100 1.3310 0.4762 0.5762 0.4021 0.3155 0.2638 0.826 3.1699 1.3812 1.8101 0.1296 2.1436 5.3349 11.4359 13.5795 15.9374 0.0874 0.1874 3.3724 10 2.5937 2.8531 0.3505 0.3186 18.5312 21.3843 24.5227 6.4951 6.8137 0.1540 4.3884 29.901 33.377 14 15 0.1357 0.1315 4.9955 7.6061 0.0315 40.152 0.2176 35.9497 40.5447 0.0247 0.0219 0.0195 0.0175 8.2014 8.3649 6.1159 0.1635 51.1591 6.0526 20 19 21 0.1351 64.0025 58.110 60.689 63.146 65.481 67.696 6.9189 79.5430 88.4973 98.3471 0.0126 9.8497 10.8347 0.1015 8.9847 23 25 17.4494 28.1024 45.2593 72.8905 117.3909 304.4816 2048.4002 13780.6123 0.0573 0.0356 164.4940 271.0244 442.5926 718.9048 1163.9085 9.4269 0.1061 0.1037 35 88.953 92.454 94.889 15 0.0014 9.3740 9.5704 3034.8164 20474.0021 137796.1234 0.0003 99.561Explanation / Answer
1.
Investment in stamps = 1000*.41 = $410
Then,
FW of the stamps in 30 years = 410*(1+6%)^30 = $2354.83 or $2355
2.
If stamps are not purchased,
Then,
Cost of stamps = 1000*.41 = $410
Since, the stamps are not purchased, then its FW will be calculated on MARR of 10%.
FW of the cost of stamp = 410*(1+10%)^30
FW of the cost of stamp = 7154.26 or $7154
3.
No,
I did not make a sound economic decision, because the value of stamps after 30 year is only $2355, and value of the funds if not invested in stamps, is $7154.
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