Question
For the cash flows below, determine the amount in year 1, if the annual worth in years 1 through 9 is $4,000 and the interest
For the cash flows below, determine the amount in year 1, if the annual worth in years 1 through 9 is $4,000 and the interest rate is 7.00% per year.
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
|---|---|---|---|---|---|---|---|---|---|
| Cash, $1000 | 0.070 | 0.070+40 | 0.070+80 | 0.070+120 | 0.070+160 | 0.070+200 | 0.070+240 | 0.070+280 | 0.070+320 |
(Round the final answer to three decimal places.)
The amount in year 1 is $ .
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
