28) Find the equivalent of present worth (t = 0) of a uniform series of $7000 for 7 years, if the payment is made every 12 months, starting 6 years from now. Assume the interest rate is 10% per year, compound continuously. 29) Costs for maintaining buildings at an industrial complex over a 10-year period are expected to be $7000 in year 1, increasing at the rate of 10% per year through year 10. At an interest rate of 15% per year, what uniform annual payment is equivalent to the series of maintenance costs?

28) Find the equivalent of present worth (t = 0) of a uniform series of $7000 for 7 years, if the payment is made every 12 months, starting 6 years from now. Assume the interest rate is 10% per year, compound continuously. 29) Costs for maintaining buildings at an industrial complex over a 10-year period are expected to be $7000 in year 1, increasing at the rate of 10% per year through year 10. At an interest rate of 15% per year, what uniform annual payment is equivalent to the series of maintenance costs?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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