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are negligible? By Eq. (2-6) and trial and error, trying 6 per cent,
(1 + 0.06) 10 =
j _ (1,0oo/135.9)o.06
1.791 = 1.791
Pr - PR _~ 1,000
13^9
_
~ 7 3b
This sum must be added to the initial cost to obtain the total capitalized
cost for the service. Capitalized cost also used to estimate the present
is
a
a
separate fund into which a periodic deposit made such that the sum
is
of the deposits plus the accumulated interest on the deposits will, at the
end of given time, be equal to certain sum of money. Thus, only
if
a
a
R" = 1,000
_ = 1,000 X 0.0759 = $75.90
x