1. Limited time only! Sign up for a free 30min personal tutor trial with Chegg Tutors
    Dismiss Notice
Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Engineering Economics: Converting a NFW to an AEW (future worth)

  1. Oct 14, 2016 #1
    given a net future worth of $72700 after 5 years at 10% interest is it possible to convert it to an annual equivalent worth that is 20 years at 10% interest?
     
  2. jcsd
  3. Oct 14, 2016 #2

    JBA

    User Avatar

    If you are asking what the value of $72700 will be in 15 years from that date simply google "calculate compounding interest".
     
  4. Oct 14, 2016 #3
    I have $72700 worth of Future worth and I want to convert it in an annuity factor that is 20 years I have already found the compounded interest. I just want to know given Net present worth can I convert it into annual equivalent worth.
     
  5. Oct 15, 2016 #4
    Sure. If you have a net present value of X, what annual payout can you take at 10% interest so that at the end of 20 years, all the principal is consumed? This is the same as an annuity of X at 10% interest for 20 years of payments.
     
  6. Oct 15, 2016 #5

    berkeman

    User Avatar

    Staff: Mentor

    Is this a schoolwork question?
     
Share this great discussion with others via Reddit, Google+, Twitter, or Facebook

Have something to add?
Draft saved Draft deleted



Loading...