In: Economics
Present Worth = 2000(P/F, 10%, 2) + 4000(P/F, 10%, 4) + 6000(P/F, 10%, 6)
= 2000(0.8264) + 4000(0.6830) + 6000(0.5645)
= 1652.8 + 2732 +3387
= 7771.8
Annual equivalent amount = 7771.8(A/P, 10%, 6)
= $1,784.40
Thus, the annual equivalent amount is $1,784.40.