case study

 

 

 

 

 

 

 

 

 

 

 

 

At 62 if they pay 1400 pm (1400 x12 =16800 per year) (so A =16800 for plan A)

F2 = 34,608 A= 16800 i =6% n = 2

F26 = 728,990 A =16800 i=6% n=23

Sum = 16800 x 24 = 403200

For Plan B A =12 x 2000 = 24000 F2= 49440 with i =6% and n=2

Select the one with numerically largest FW

Use the case study of Annual worth analysis and 2 sums chapter 6