Respuesta :
The amount that has to be deposited at the end of year zero is $ 60561.77 (rounded to the nearest cent).
How do we find the amount to be deposited after the end of zero year?
- We need an amount x to be deposited at the end of 0 year (or beginning of year 1).
To solve the problem, Let's replace the problem by
- An annual cash-out of A=$18000 for n=6 years, added onto
- A cash-in gradient of G=$2000 annually starting at the end of year 2.
- 9% is the Annual rate.
Present value of $18000 annual cash-out
Pa = [tex]\frac{A((1+i)^n-1)}{(1+i)^n}[/tex]
= [tex]\frac{18000((1+0.09)^6-1}{(0.09+1)^6}[/tex]
= - 80746.53
Present value of G=$2000 annual gradient
Pb = [tex]\frac{G((1+i)^n-in-1}{1^2(1+i)^n}[/tex]
Pb = [tex]\frac{2000(1+0.09)^6-0.09(6)-1}{0.09^2(1+0.09)^6}[/tex]
Pb = 20184.77
Total Present Value of Expenses = -$80746.53+$20184.77=-60561.77
Amount needed at the end of year zero = -(-60561.77)= $60561.77
To learn more about, cash flow refer
https://brainly.com/question/10922478
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