Given: (F/P, 12%, 10) Find:

Given: (F/P, 12%, 10) Find: Translate the above, calculate F/P then check the table value, calculate P/F F the future worth is what is being sought P the present worth is that is known 12% is the interest rate 10 is the number of time periods (F/P, 12%, 10) = (1+i)n = (1+.12)10 = 1.1210 (F/P, 12%, 10) = 3.105848 From T17, p.718 (F/P, 12%, 10) = 3.1058 P/F = 1/F/P = 1/3.105848 P/F = .3219732 Table T17, p.718 P/F = .3220 Given: A crankshaft company is trying to decide whether to upgrade now for $150,000 or in 3years at 12% per annum Find: How much will it cost them in 3 years?