Basics of Engineering Economy 2 Chapter 4 - AssHero

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Solution 4.23

I = 40,000(0.06)/2 = $1200 every six months

P = 1200(P/A,4%,40) + 40,000(P/F,4%,40)

= 1200(19.7928) + 40,000(0.2083)

= $32,083.36