Lecture No5 - Equal-Payment - Series-Modified
Lecture No5 - Equal-Payment - Series-Modified
4
Chapter 3
Contemporary Engineering Economics
Copyright © 2010
0 1 2 N
A A A
P
0 1 2 N
0 N
A A A
0 1 2 N
0 1 2 N
0 1 2
= N
A A A
A(1+i)N-2
A A A
A(1+i)N-1
0 1 2 N 0 1 2 N
(1 + i)N − 1
F = A(1 + i)N −1 + A(1 + i)N −2 + + A = A
i
Contemporary Engineering Economics, 5th edition, © 2010
Example 3.14 Uniform Series: Find F, Given i, A, and N
❑ Given: A = $3,000, N = 10
years, and i = 7% per year
❑ Find: F
❑ Excel Solution:
❑ Given: A = $3,000, N = 10
years, and i = 7% per year
❑ Find: F
❑ Find: A
$5,000
❑ Excel Solution:
0 1 5
=PMT(7%,5,0,5000)
41
41
41
❑ Excel Solution:
❑ Given: P = $250,000, N = 6
years, and i = 8% per year, but
the first payment occurs at the
end of year 2
❑ Find: A
❑Step 1: Find the equivalent
amount of borrowing at the end
of year 1:
❑ Excel Solution: