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n = 1. Solve for the unknown value: P = $1,000, i= 12%, n = 5 years, F = ? 2. If you had $1,000
n = 1. Solve for the unknown value: P = $1,000, i= 12%, n = 5 years, F = ? 2. If you had $1,000 now and you invested it at 6%, how much would it be worth 12 years from now? 3. Given a deposit of $800 now that generates an annual income of $222 for 5 years, find the annual interest rate. 4. If you can make 6% interest on your own money, how much is $1,000 paid to you 12 years in the future worth to you now? 5. A single payment of $2,000 is made now. How much would be the annual payments if it were made in four equal annual payments? Take i = 8%. 6. Find the present equivalent of the following cash flow if i = 18%. 0 1 2 3 4 5 6 7 8 9 10 End of Year Payment ($) 100 80 60 40 20 0 -20 -40-60-80 -100 7. Using an interest rate of 8%, what is the capitalized cost of a tunnel to transport water through a mountain range if the first cost is $1,000,000 and the maintenance costs are expected to occur in a six-year cycle as shown below: 1 2 3 4 6 End of Year Maintenance Cost $35,000 $35,000 $35,000 $45,000 $45,000 $60,000
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