2.1 - Determining Present Worth of Known Uniform Series
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Practice Questions
Test your understanding with targeted questions
What does the uniform series capital recovery factor help determine?
💡 Hint: Think about how loans are structured.
Describe the uniform series present worth factor.
💡 Hint: What does present worth mean in financial terms?
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the main purpose of the uniform series capital recovery factor?
💡 Hint: Consider the nature of repayments.
True or False: The uniform series present worth factor can be used to convert future cash flows into their present value.
💡 Hint: Think about how money's value changes over time.
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Challenge Problems
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A company plans to purchase a crane for $150,000, planning to finance it at a 9% interest rate over 5 years. Calculate the equal annual payments using the capital recovery factor.
💡 Hint: You'll need i and n values from the finance terms.
Evaluate how a change from 8% to 12% interest would impact the annual payment for a machine costing $80,000 over 7 years using the capital recovery factor.
💡 Hint: Always compare using the same formula with adjusted interest.
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