Develop a mathematical relationship for finding the accumulated amount F at the end of n years that

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Develop a mathematical relationship for finding the accumulated amount F at the end of n years that will result from a series of n beginning-of-year payments each equal to B if these payments are placed in an account for which the interest rate is i%/year.

a. Express the relationship between F and B in terms of the factors listed in the tables of Appendix A.


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b. Express the relationship between F and B in terms of i and n.

c. Demonstrate that your answers to (a) and (b) are equivalent by calculating the value of F using B = $1;000, n = 5, and n = 10 percent for each approach.

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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