3.4 - Inverse Factors
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Practice Questions
Test your understanding with targeted questions
What does the uniform series capital recovery factor help calculate?
💡 Hint: Think about what a loan repayment entails.
What is the purpose of the uniform series present worth factor?
💡 Hint: Consider how we reverse calculations for future payments.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does the uniform series capital recovery factor help determine?
💡 Hint: It relates to managing loans and repayments.
True or False: The uniform series present worth factor calculates the amount needed for future cash flows.
💡 Hint: Think about reversing future goals!
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Challenge Problems
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A company plans to receive $50,000 at the end of each year for 5 years. Calculate how much needs to be invested now at an interest rate of 7%.
💡 Hint: Apply the interest rate over 5 years.
An equipment cost is $150,000 and it has a useful life of 10 years with an interest rate of 8%. Determine the annual payment using the USCRF.
💡 Hint: Focus on extracting the annual payment from the known equipment cost.
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