How much is the total value of all these presents worth today? 2. How much is the future value of all these presents at the end of 12 years? 3. If Tita Rhea agrees to give her these amounts annually forever, how much is its total value worth today?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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1. How much is the total value of all these presents worth today?
2. How much is the future value of all these presents at the end of 12 years?
3. If Tita Rhea agrees to give her these amounts annually forever, how much is its total value worth today?
4. If the presents are each made continuously throughout the year at a rate of P, multiply the present value in #7 by a suitable adjustment factor (d/δ) to determine its total present value. Type the resulting amount below.

Perlyn receives at the beginning of each year P = 2,000 as a present from her Tita Rhea as shown in the diagram
below. Suppose money is worth 6% effective annually.
P
H
0
7
241
P
+
2+2
P
P
3
...
P
+
10
P
+
11
12
8
Transcribed Image Text:Perlyn receives at the beginning of each year P = 2,000 as a present from her Tita Rhea as shown in the diagram below. Suppose money is worth 6% effective annually. P H 0 7 241 P + 2+2 P P 3 ... P + 10 P + 11 12 8
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