Answer to Question #244924 in Civil and Environmental Engineering for Alan Enrico V Tuib

Question

Refer to the following table of cash flows:
End of year 0 4 8 12 16
Cash flow $5,000 $5,000 $5,000 $5,000 $5,000
What is the annual worth of these cash flows over 16 years when i = 5% per year?

Answer 1

total years= 16

$i=5\%$

$5\% \text{will be \$250}$

So the amount after interest will be $\$5250$ at the end of every year $0-4-8-12-16$

for over the 16 years the worth will be $\$26250$

answer will be $\$26250$