An electrical engincer wants to deposit an amount P now such that she can withdraw an equalannual amount of A, = $2000 per year for the first 5 years, starting 1 year after the deposit, anda different annual withdrawal of A, = $3000 per year for the following 3 years. How would thecash flow diagram appear if i = 8.5% per year?

A1 = 2000 per year N = Time Period = 5 years End of year deposits A2 = 3000 per year Time Period = 3…

Answered: An electrical engineer wants to deposit…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 = $3000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 = $4000 per year for the following 3 years. How would the cash flow diagram appear if i = 9% per year?
You will deposit $30,000 per year into an account beginning today that pays 13 percent per year. How long (in years) would it take for you want have a total of $1,000,000 at retirement? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Must identify variables and use excel
You will deposit $30,000 per year into an account beginning today that pays 13 percent per year. How long (in years) would it take for you want have a total of $1,000,000 at retirement? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Identify variables and use excel
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A person is preparing for his retirement and placed 50,000 Php in a time deposit with 6.5% interest per annum, compounded continuously.Using N for the monetary amount, what is the continuous compounding interest general solution? What is c? Using N for the monetary amount, what is the particular solution equation for the problem? How long (in years) will it take the retirement fund to reach 1 million Php?
Suppose you invest $2,000 today and receive $11,000 in five years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $2,000 upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year?
Determine the amount P that you should deposit into an account 2 years from now, in order to be able to withdraw Rs. 4000/- per year for 5 years starting 3 years from now, at an interest rate of 15% per year ? Also find the investment’s current value?
You plan to make a lump-sum deposit of $5000 now into an investment account that pays 6% per year, and you plan to withdraw an equal end-of-year amount of $1000 for 5 years, starting next year. At the end of the sixth year, you plan to close your account by withdrawing the re- maining money. Define the engineering economy symbols involved.
Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $3,000 per month for 15 years, if the account earns 7% per year PV = $ Need Help? Read I Watch It
In order to fund your retirement, deposit of RM X can be made into an account today. This retirement plan wishes to pay RM100, in real terms, for 15 years, with first payment occurring 6 years from now. The inflation rate would be 0.0% for the next 5 years and 1.5% per annum thereafter. The annual effective rate of return is 6.8%. Calculate X. Please explain in details and state what formula did use on how to solve the problem
Suppose a deposit of R dollars is made at the end of each year, and assume an APR of r% compounding continuously. (a) If we invest like this for 3 years, what is the value of the account after the third year? (b) If we are making these payments for 3 years, how much money must we invest today to cover the payments? (c) If we make these payments in perpetuity, find a formula which describes the amount of principal we must invest today to cover all future payments. (d) If we invest like this for three years, but instead use an account with an APR s% compounded weekly, determine s so that this second account has the same value as your answer in part (a) after three years.
Provide step by step manual solution, formula(s), and diagram the below given problem. An investor have a projected surplus income of P1000 per year which he plans to place in a bank which offers an interest of 18% per annum for time deposit over 5 years. Compute how much shall the investor collect at the end of 13 years.

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