Compute f-p then check table value

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Given: (F/P, 12%, 10) Determine: Translate , compute F/P then check table value, compute P/F F future worth is what is being sought P present worth is that is known 12% is interest rate 10 is number of time periods (F/P, 12%, 10) = (1+i)n = (1+.12)10 = 1.1210 (F/P, 12%, 10) = 3.105848 From T17, p.718 (F/P, 12%, 10) = 3.1058 P/F = 1/F/P = 1/3.105848 P/F = .3219732 Table T17, p.718 P/F = .3220 Given: Crankshaft company is trying to decide whether to upgrade now for $150,000 or in 3years at 12% per annum Determine: How much will it cost them in 3 years?

Reference no: EM1384702

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