Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
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Chapter 1, Problem 57APQ
To determine
Calculate the
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At a compound interest rate of 10% per year, the
amount that $10,000 one year ago is equivalent to
now is closest to:
(a) $8264
(b) $9091
(c) S11,000
(d ) $12,100
Solve the following problems:
1. In order to build a new warehouse facility, the regional distributor for Valco
Multi-Position Valves borrowed $1.6 million at 10% per year interest. If the
company repaid the loan in a lump sum amount after 2 years, what was (a) the
amount of the payment, and (b) the amount of interest?
2. A sum of $2 million now is equivalent to $2.42 million 1 year from now at what
interest rate?
3. In order to restructure some of its debt, General Motors decided to pay off one
of its short-term loans. If the company borrowed the money 1 year ago at an
interest rate of 8% per year and the total cost of repaying the loan was $82 million,
what was the amount of the original loan?
4. How many years would it take for an investment of $280,000 to cumulate to at
least $425,000 at 15% per year interest?
5. Valtro Electronic Systems, Inc. set aside a lump sum of money 4 years ago in
order to finance a plan expansion now. If the money was invested in a 10% per
year simple…
The compound interest rate per year that amounts of $1000 one year ago and $1345.60 one year hence are equivalent to is closest to: (a) 8.5% per year (b) 10.8% per year (c) 20.2% per year (d ) None of the above
Chapter 1 Solutions
Engineering Economy
Ch. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - Prob. 10P
Ch. 1 - Prob. 11PCh. 1 - Prob. 12PCh. 1 - Prob. 13PCh. 1 - Prob. 14PCh. 1 - Prob. 15PCh. 1 - Prob. 16PCh. 1 - Determine the amount of money FrostBank might loan...Ch. 1 - Prob. 18PCh. 1 - Prob. 19PCh. 1 - Prob. 20PCh. 1 - Prob. 21PCh. 1 - Prob. 22PCh. 1 - Prob. 23PCh. 1 - Prob. 24PCh. 1 - To attract new customers, EP Employees Credit...Ch. 1 - Prob. 26PCh. 1 - Prob. 27PCh. 1 - Prob. 28PCh. 1 - Prob. 29PCh. 1 - Prob. 30PCh. 1 - Prob. 31PCh. 1 - Prob. 32PCh. 1 - State University tuition and fees can be paid...Ch. 1 - Prob. 34PCh. 1 - Prob. 35PCh. 1 - Prob. 36PCh. 1 - Prob. 37PCh. 1 - Prob. 38PCh. 1 - Prob. 39PCh. 1 - Prob. 40PCh. 1 - Prob. 41PCh. 1 - Prob. 42PCh. 1 - Prob. 43PCh. 1 - What is the weighted average cost of capital for a...Ch. 1 - Prob. 45PCh. 1 - Prob. 46PCh. 1 - Prob. 47PCh. 1 - Prob. 48ESCh. 1 - Prob. 49ESCh. 1 - Prob. 50ESCh. 1 - Prob. 51ESCh. 1 - Prob. 52APQCh. 1 - Prob. 53APQCh. 1 - Prob. 54APQCh. 1 - Prob. 55APQCh. 1 - Prob. 56APQCh. 1 - Prob. 57APQCh. 1 - Prob. 58APQCh. 1 - Prob. 59APQCh. 1 - Prob. 60APQCh. 1 - Prob. 61APQCh. 1 - Prob. 1CSCh. 1 - Prob. 2CSCh. 1 - You developed an interest in the LCOE relation and...
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- At 14% per year, A for years 1 through 6 of the cash flows shown below is closest to: (a) $300 (b) $560 (c) $800 (d) $1040 $800 $700 $600 $500 6 Years ² $300 $400arrow_forwardA chip manufacturing company wants to have $10 million available 5 years from now in order to build new warehouse and shipping facilities. If the company can invest money at 10% per year, the amount that it must deposit each year in years 1 through 5 to accumulate the $10 million is closest to: (a) $1,638,000 (b) $2,000,000 (c) $2,638,000 (d) $2,938,000arrow_forwardDetrich Products is planning to upgrade an aging manufacturing operation 5 years from now at a cost of $100,000. If the company plans to deposit money into an account each year for 4 years beginning 2 years from now (first deposit is in year 2) to pay for the expansion, the amount of the deposit at 10% per year interest is closest to: (a) $30,211 (b) $21,547 (c) $16,380 (d) $14,392arrow_forward
- An engineer who is saving for her retirement plans to deposit $500 every quarter, starting one quarter from now, into an investment account. If the account pays interest at 6% per year, compounded semiannually, the total she will have at the end of 25 years is closest to: (a) $50, 000 (b) $56, 400 (c) $79,700 (d) $112, 800 (e) None of the above b darrow_forwardIf you borrow $24,000 now at an interest rate of 10% per year and promise to repay the loan with payments of $3695 per year starting 1 year from now, the number of payments that you will have to make is closest to: (a) 7 (b) 8 (c) 11 (d) 14arrow_forwardFor an interest rate of 2% per quarter, determine the effective interest rate (a) quarterly (b) semi-annually (c) yearly, and (d) monthlyarrow_forward
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