1.28 Use economic equivalence to determine the amount of money or value of i that makes the following statements correct. (a) $5000 today is equivalent to $4275 exactly 1 year ago at i = % per year. (b) A car that costs $28,000 today will cost $ a year from now at i = 4% per year. (c) At i = 4% per year, a car that costs $28,000 now, would have cost $

1.28 Use economic equivalence to determine the amount of money or value of i that makes the following statements correct. (a) $5000 today is equivalent to $4275 exactly 1 year ago at i = % per year. (b) A car that costs $28,000 today will cost $ a year from now at i = 4% per year. (c) At i = 4% per year, a car that costs $28,000 now, would have cost $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

2. Zharie's Fashion Boutique is an online selling business specializes in ready to wear clothes for teens and young adults. The average t-shirts sold every day is 15 and the average number of dresses sold every day is 10. She gets her supplies at a local RTW dèaler in' the city. The cost per t-shirt is 95 pesos whole the dresses cost 200 pesos per piece. She then adds 50% mark-up to every piece of RTW sold. Calculate how much mark-up she should add, determine how much should be the selling price for 20 liters bottled water and compute the projected revenue. Projected Projected Volume Revenue Type of RTW Cost per Unit Mark-up Selling Price Average No. of Item Sold Daily Total
(a) If a saving account earns interest at 12% per year but is compoundedquarterly, what is the effectively yearly interest rate?(b) Suppose we deposit $6000 now and $9000 next year to the savingaccount, how much will be in the account in year 10, using theeffectively interest rate. and draw the cash flow diagram(c) What is the upper bound of the effective yearly interest rate?Hint: Consider interest rate compounded continuously
ENGINEERING ECONOMICSKyle is a grade 5 student currently taking his modular class at home since the pandemic happened in the lastmonth of the first quarter of that year 2020 here in the Philippines. His Mom Lea tried to invest in Kyle’s future forcollege which saves money of 500PhP twice a month which started at the beginning of the second quarter. Whatwill be the accumulated value after he finished his Senior High School level assuming that the last contributionand his graduation will be held at the end of the second quarter with the equivalent of 8% cost of moneycompounded on the stated period of contribution?a. List the given variablesb. Formula & Complete solution
A company is planning to spend $100,000 now for possible replacement of the heating and cooling systems in three of its larger manufacturing plants. If the replacement won't be needed for 4 years, what is an equivalent annual worth if it earns interest at a rate of 8% per year? a. $30,192 b. $29,992 OC. $30,921 O d. $31,200 جا Moving to another question will save this response. Question 2 of 20
Problem 3. Calculate the annual worth in years 1 through 10 of the following series of incomes and expenses, if the interest rate is 10% per year. Year 0 1-6 7-10 Income, S/Year 10,000 800 900 Expense, S/Year 2000 200 300
A wealthy business Mr. Tan wants to start a permanent fund for supporting research directedtoward sustainability. The donor Mr. Henry plans to give equal amounts of money for each of thenext 5 years plus one now, so that P100,000 per year can be withdrawn each year forever. Beginning inyear 6. If the fund earns interest at a rate of 8% per year. How much money must be donated eachtime? What would be the formula and the cashflow diagram?
Subject: Engineerings Economics Topics:1. Uniform Arithmetic Gradient Please help me to solve this in step by step manner. Make sure to analyze the question well.BOX your final answer Question: The End of Years cash flow are expected to be P10,000 for second year, P20,000 for the third year, and P30,000 for the fourth year. If interest is 18% per year, find the present equivalent value P at the beginning of the first year. PLEASE FOLLOW THE FORMULA BELOW AND MAKE SURE TO USE REFERENCES PLEASE
DRAW ALL CASH FLOW DIAGRAMS 1. Barbara wants to triple the money currently in her account that earns 3.5% per year interest. How long does she need to wait? 2. Joe deposits S8,000 right now and another $3,000 5 years from now. How much money will be in the account 12 years from now? Rate is 4% per year 3. Joe (the same one above) deposits $8,000 now and withdraws $3,000 5 years from now. How much money will be in the account 12 years from now? 4. Jane deposits $2,500 into an account that carns 4.5% per year. 3 years later, the interest rate goes up to 6.5% How much money she will have 8 years after the initial investment? 5. Tim starts his freshman year and would like to take a trip to Europe upon graduation that will cost $5,600. How much he should be saving every year, including his senior year to be able to afford this trip. His bank account earns 4.5% per year interest.
Kylie has been offered a student loan by a hometown engineering firm. She will borrowP5O,000 each year for 4 years. She is required to maintain an average grade of 85, majorin any of the engineering program, and graduate within 5 years. Beginning 1 year aftergraduation and continuing for 3 more years, she is required to repay this loan at P50,000per year. Is this a good deal? Why?
4. An investment generates an annual income of $200,000 with a salvage value of $2,000,000 in 10 years. If the interest rate is 10% per year, how much should one pay for it now?
A father wants to save in advance for his 8-year-old daughter's college expenses. The daughter will enter the college 10 years from now. An annual amount of R20,000 in today's rands will be required to support the college for 4 years. Assume that these college payments will be made at the beginning of the school year. The future general interest rate on the savings account will be 8% per annum during this period.What is the equal amount the father must save at the end of each year until his daughter goes to college?
ENGINEERING ECONOMICSIt costs P500,000 at the end of each year to maintain a section of Kennon Road in Baguio City. If money is worth10%, how much would it pay to spend immediately to reduce the annual cost to P100,000?a. List the given variablesb. Formula & Complete solution