AW: What is the AW

**What is the annual worth of an asset** that has a present worth of 190 and that lasts 7 years when the MARR is 10%?

Solution:

For this question, we should come up with this equation, Annual Worth = Present Worth*(A|P,i,Life) = P[(i(1+i)^N)/(((1+i)^N)−1)].

Also, we already knew some values for that.

- Present Worth = 190

- Life = 7 years

- MARR= 10%

so, we can rewrite the equation such as this, Annual Worth =190(A|P,0.1,7)= 190*[(0.1(1+0.1)^7)/(((1+0.1)^7)−1)].

Annual Worth = 190*(0.19487171/0.9487171) = 39.027045 = 39.03

For this reason,**The answer is 39.03.**

page revision: 4, last edited: 17 Nov 2015 16:38