In five years, P18,000 will be needed to pay for the retrofitting of the barangay hall. To generate this sum, three annual payments are established now by the barangay officials. For tax purposes, no further payment will be made after the beginning of the third year. What payments are necessary if money is worth 15% per annum?
In five years, P18,000 will be needed to pay for the retrofitting of the barangay hall. To generate this sum, three annual payments are established now by the barangay officials. For tax purposes, no further payment will be made after the beginning of the third year. What payments are necessary if money is worth 15% per annum?
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 7QAP
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Question
8. Please use the formula to solve the problem
![Legend:
Cc - Capitalized Cost (Currency)
Fc - First Cost (Currency)
Mc - maintenance Cost (Currency)
Rc - Replacement Cost (Currency); if no Re: Re Fe
Sy- Salvage Value (Curency); if no Sy: Sy = 0
A - Periodic Amount (Currency)
F-Future Value (Currency)
G - Periodic Amount Increment Amount (Currency)
P - Present Value (Currency)
g - Periodic Amount Increment Rate (Persentage)
i-Nominal Interest Rate (Percent)
m - Number of Periods per Year (Number)
r - Effective Interest Rate (Percent)
t-Number of Years (Number)
Formulae:
Compounding Transformation (i, (m₂)→ 1₂ (m₂)): (1 + ) = (1 +)**
Perpetuity (t=00):
Ordinary Annuity (Payment at End of Period):
P=A1-(1+1)-²)
Arithmetic Gradient:
Geometric Gradient:
Capitalized Cost:
n = mt
Annuity Due (Payment at Beginning of Period):
r=-
m
F = P(1+r)"
P = F(1+r)-R
F=A
F=A
= A ((1+r)^²-1)
F=
P=A (1-(1+r)^)(1+r)
= A (¹ + r)² - 1) (1 + r)
T
FA[(1+r)-1]G[-nr + (1+r)" - 1]
T
r2
A[(1+r)"-(1+g)"]
T-9
Rc-Sv
Cc=Fc++ (1+r)"-1
A = Cer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7053b554-3a97-4d68-beed-d147b9a2b76e%2Fcfa3631a-f1e1-4f56-8a0c-fafaa475e32b%2Fe1g344_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Legend:
Cc - Capitalized Cost (Currency)
Fc - First Cost (Currency)
Mc - maintenance Cost (Currency)
Rc - Replacement Cost (Currency); if no Re: Re Fe
Sy- Salvage Value (Curency); if no Sy: Sy = 0
A - Periodic Amount (Currency)
F-Future Value (Currency)
G - Periodic Amount Increment Amount (Currency)
P - Present Value (Currency)
g - Periodic Amount Increment Rate (Persentage)
i-Nominal Interest Rate (Percent)
m - Number of Periods per Year (Number)
r - Effective Interest Rate (Percent)
t-Number of Years (Number)
Formulae:
Compounding Transformation (i, (m₂)→ 1₂ (m₂)): (1 + ) = (1 +)**
Perpetuity (t=00):
Ordinary Annuity (Payment at End of Period):
P=A1-(1+1)-²)
Arithmetic Gradient:
Geometric Gradient:
Capitalized Cost:
n = mt
Annuity Due (Payment at Beginning of Period):
r=-
m
F = P(1+r)"
P = F(1+r)-R
F=A
F=A
= A ((1+r)^²-1)
F=
P=A (1-(1+r)^)(1+r)
= A (¹ + r)² - 1) (1 + r)
T
FA[(1+r)-1]G[-nr + (1+r)" - 1]
T
r2
A[(1+r)"-(1+g)"]
T-9
Rc-Sv
Cc=Fc++ (1+r)"-1
A = Cer
Transcribed Image Text:In five years, P18,000 will be needed to pay for the
retrofitting of the barangay hall. To generate this sum,
three annual payments are established now by the
barangay officials. For tax purposes, no further
payment will be made after the beginning of the third
year. What payments are necessary if money is worth
15% per annum?
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