Annuities Annuity Tables, present value

In effec t, in computing the average net annual cash flow per dollar invested, the value of f p of Eq. (9-46) has been obtained for this example. From tables of the annuity present-worth factor/ p the value of the interest rate is found to be = 0.25 when f p = 0.5124 with n = 3 years. 

Table 17.7 Time Value of Money Annuity Factors—Uniform-Series Payments—Compound Interest (Details Presented in Section 17.5) ...

The key to performing any economic analysis is the ability to evaluate and conpare equivalent investments. In order to understand that the equations presented in Table 9.1 provide a comparison of alternatives, it is suggested to replace the equal sign with the words is equivalent to. As an example, consider the equation given for the value of an annuity. A, needed to provide a specific future worth, F. From Table 9.1. Equation (9JT) can be expressed as... 

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