Question

LI YU LU U UJIUIU. rs the device ear. Contributed by Hamed Kashani, Saeid Sadri, and Baabak Ashuri, Georgia Institute of Technology 6-12 If i = 6%, compute the EUAB over 6 years that is A equivalent to the two receipts shown. parcel for a been set at 25% down, the transac- are the two 24,500 13,000 Sadri, and Inology rst birthday,

Answer 1

To find EUAB, first we will find the F equivalent of the given cash flows:

F=13000(F/P, 6%,3)+24500(F/P, 6%,1)

F=13000(1.191)+24500(1.060)

F=15483+25970=41453

Now, we will find the uniform equivalent of F=41453 to get the EUAB,

A=F(A/F, 6%,6)

A=41453(A/F, 6%,6)

A=41453(.1434)=5944.3602

So, EUAB over 6 years when i=6% for the given two receipts is 5944.3602.