This infinite sum is given by
a
S = ------ but ONLY if r<1. Here, r>1, so the infinite sum does not exist.
1-r
Answer:
$6,283.56
Step-by-step explanation:
The net present value is the present value of after tax cash flows from an investment to the amount invested in a project.
Net present value can be calculated using a financial calculator
Cash flow in year zero = -$290,000
Cash flow each year from year one to three = 0
Cash flow each year from year four to twelve = $64,000.
I = 9%
NPV = $6,283.56
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
This is the concept of application of compound interest, to calculate the amount I will have after the 5th deposit we proceed as follows;
A=p(1+r/100)^n
where;
A=future amount
p=principle
r=rate
n=number of years
thus substituting the values in our formula we get:
A=3,100(1+8.5/100)^5
A=3,100(1+0.085)^5
A=3100(1.085)^5
A=4,666.34
The amount of money after 5 years will be $4,666.24
The plane would be 100 feet long. if the scale is 1/100 and the model is 1 ft you would take 1 x 100 to get 100 feet.
