Solve diagrams (a)-(c) for the unknowns R, S, and T, assuming a 10% interest rate.

Question

Solve diagrams (a)-(c) for the unknowns R, S, and T, assuming a 10% interest rate.

David · Accepted Answer

Solve diagrams (a)-(c) for the unknowns R, S, and T, assuming a 10% interest rate.
Answer: 
(a) 
R ($) = Future worth = 100 x FVIFA(10%, 4) = 100 x 4.641 (From FVIF table) = 464.1 
(b) 
S ($) = 50 x PVIF(10%, 2) + 100 x PVIF(10%, 3) + 150 x PVIF(10%, 4) 
= 50 x 0.8264** + 100 x 0.

Solve diagrams (a)-(c) for the unknowns R, S, and T, assuming a 10% interest rate.

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