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

1. Oct 14, 2016

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. Oct 14, 2016 JBA If you are asking what the value of$72700 will be in 15 years from that date simply google "calculate compounding interest".

3. Oct 14, 2016

garr6120

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.

4. Oct 15, 2016

Staff: Mentor

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.

5. Oct 15, 2016

Staff: Mentor

Is this a schoolwork question?