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From the accompanying cash flow diagram, find the value of that will establish the economic equivalence between the annual) deposit series and the annual) withdrawal
From the accompanying cash flow diagram, find the value of that will establish the economic equivalence between the annual) deposit series and the annual) withdrawal series at an interest rate of 10% compounded annually. Don't forget to write the solution ALSO using factor notation. Show all your calculations and explain every step. Use the corresponding interest factors, Do NOT treat all and every amount as a single payment series. You have to identify the corresponding types of series and use the correct formulas. Otherwise, you will get very few points. There are several ways of solving this problem. I expect each of you to solve it in your own way NOTE: be neat (organized and clear)! 2600 2500 2400 2300 2200 2100 1800 1800 2000 + 1400 + 1900 1200 1000 1800 4 1700 600 9 10 11 12 13 14 15 17 18 19 20 S S SS 25 25 25 25 25 25
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