Question

Calculate the equivalent annual worth of the following scheduled payments at an interest rate of i= 15%! $200 $200 $200 $200 $200 $200 $150 $150 $100 $150 $150 $100 0 1 2 3 4 5 6 7 8 9 10 11 12 Click the icon to view the interest factors for discrete compounding when i = 15% per year The equivalent annual worth is $ (Round to the nearest dollar)

Answer 1

Solution:

First we need to compute to compute NPV of this payment schedule then we will find EAW by an excel function " =PMT ".

Calculations:

(Rounded off)

Year Payments 100 150 150 BBB 00 vau WNO 200 200 200 100 150 150 200 200 200 NPV $858.33 EAW (Equivalent annual worth) $158

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