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Question 5.P.7: Calculate the factors [F/A, 7%, 20] and [A/G, 7%, 20] used i......

Calculate the factors [F/A, 7%, 20] and [A/G, 7%, 20] used in Problem 5.6.

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By (5.4),

F/A = em – 1er – 1  (5.4)[F/A, 7%, 20] = e(0.07)(20) – 1e0.07 – 1 – 4.055200 – 11.072508 – 1 = 42.1359F/A  =  \frac{e^m  –  1}{e^r  –  1}    (5.4) \\\\ [F/A,  7\%,  20]  =  \frac{e^{(0.07)(20)}  –  1}{e^{0.07}  –  1}  –  \frac{4.055200  –  1}{1.072508  –  1}  =  42.1359

and, By (5.8),

A/G = 1er – 1 – nem – 1  (5.8)[A/g, 7%, 20] = 1e0.07 – 1 – 20e(0.07)(20) – 1 = 11.072508 – 1 – 204.055200 – 1 = 7.2454A/G  =  \frac{1}{e^r  –  1}  –  \frac{n}{e^m  –  1}    (5.8) \\\\ [A/g,  7\%,  20]  =  \frac{1}{e^{0.07}  –  1}  –  \frac{20}{e^{(0.07)(20)}  –  1}  =  \frac{1}{1.072508  –  1}  –  \frac{20}{4.055200  –  1}  =  7.2454

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