3.3.

3) Uneven payment series

34
35
36
37
38
39
40
3.3.4) Equal payment series

41
 Draw the cash flow diagram.
Write the solution using factor notation.

42
Example 3.15

43
and you earn a 7% return. Assume that you plan to retire at age 65.

1. Find F at your retirement.

2. Find A if you start at the age of 40 but want to have the same
amount of money as in part 1.

44
45
Example 3.18

46
Example 3.19

47
48
Problems equal-payment series

49
50
51
3.3.5) Linear gradient series

52
Examples linear-gradient series

53
54
55
3.3.6) Geometric gradient series

56
57
 3.4) Unconventional
equivalence calculations

58
 Example
If you make four $100 annual deposits in your savings
account, which earns 10% annual interest, what equal
annual amount (A) can be withdrawn over four subsequent
years?

a) Use as base period n=0.

b) Use as base period n=4.

59
a) Computing the present worth of each cash flow at time = 0.
b) Computing the future worth of each cash flow at time = 5.

60
61
62
63
64
65
66
67
68
69
70
71
72
73