Suppose an engineer has $180000 in his/her savings account that pays 5% nominal interest that compounds annually. In the next 10 years, in the end of each year, s/he would like to make withdrawals such that every next year's withdrawal will be 5% more than the previous year's withdrawal. What is the maximum amount that can be withdrawn in the end of the first year? Choose the closest value to your answer. A $18000 $18300 $18450 $18900 E $18600

Suppose an engineer has $180000 in his/her savings account that pays 5% nominal interest that compounds annually. In the next 10 years, in the end of each year, s/he would like to make withdrawals such that every next year's withdrawal will be 5% more than the previous year's withdrawal. What is the maximum amount that can be withdrawn in the end of the first year? Choose the closest value to your answer. A $18000 $18300 $18450 $18900 E $18600

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

Show the steps of your calculation O For example, question: a person deposits $500 to bank now, if the annual interest rate is 8%, what will be the worth of this deposit after 3 years? You need to write down F = P (F/P, i, n) – 500 (F/P, 8%, 3) mem
Suppose that under the Plan of Repayment one should pay off the debt in a number of equal end-of-month installments (principal and interest). This is the customary way to pay off loans on automobiles, house mortgages, etc. A friend of yours has financed $15,000 on the purchase of a new automobile, and the annual interest rate is 6% (0.5% per month). a. Monthly payments over a 36-month loan period will be how much? b. How much interest and principal will be paid within three month of this loan?
Suppose that under the Plan of Repayment one should pay off the debt in a number of equal end-of-month installments (principal and interest). This is the customary way to pay off loans on automobiles, house mortgages, etc. A friend of yours has financed $15,000 on the purchase of a new automobile, and the annual interest rate is 6% (0.5% per month). a. Monthly payments over a 36-month loan period will be how much? b. How much interest and principal will be paid within three month of this loan? Click the icon to view the interest and annuity table for discrete compounding when i = 0.5% per month. a. The monthly payment over a 36-month loan period is $ 456.3. (Round to the nearest cent.) b. Fill in the table below. (Round to the nearest cent.) Payment Number 1 2 3 Interest Payment $ $ $ Principal Repayment $ $ $ Remaining Loan Balance $ $ $
Suppose your parents have decided that after your graduation at the end of the year they would start to save money to help pay for your younger sister to attend University to study Food Process Engineering. They plan to save money for 5 years before she starts college and to save during her university years. They plan to contribute GH¢4,000 per year at the start of each of her 4 university years. Your parents would thus make monthly payments for 8 years, 5 year prior to and 3 during your sister's university education. The monthly interest rate earned on their savings is 0.45%. How much must the monthly savings be under this condition?
You have been making monthhy deposits of $5 into a savings account with monthly compounding for 3 years, and you do not know what the accounts APR s ( you cannot use the Montly Deposits Balance Formula to compute the balance exactly). Eventually you remember that the APY (not the APR) ia 1.7%. Use the upper bound/etimate for the balance (trom the course video) te determine an upper bound for your account's balance. (If necessary, round your answer to the nearest dollar.)
2. Marion would like to purchase a used car, which requires a down payment of 80,000.00 pesos. He is willing to pay a monthly amortization equal to 25% of his monthly salary. if the seller will agree to a down payment and the balance payable in 3 years at 16% per year payable in monthly basis, how much is the cash value of the car if the first payment will be due at the end of the first month? Mario is receiving a monthly salary of 16,000.00 pesos a month. Show the cashflow diagram.
After how many years will Nicole's investment triple if invested at 10% per anmum, net of deductions,compounded quarterly?
It is likely that airplane tickets will increase 5% in each of the next 4 years. The cost of a plane ticket at the end of the first year will be $10571. How much money would need to be placed in a savings account now to have money to pay for a trip at the end of each year for the next 4 years? Assume the savings account pays 2% annual interest. Round your answer to 2 decimal places. Add your answer
Spectrum Cable has a special right now for $99 per month for new customers that includes TV/Internet/Phone. You must sign a 2 year contract. For the second year of the deal, there will be a 15% increase in the monthly cost. Right now, Cameron is paying: $60 for TV, $45 Internet, and $38 for Phone each month. Will he still save money in the second year; if so, how much money will he save each month? * Yes, he will save $120.45 monthly during the second year. No, he will not save money monthly during the second year. Yes, he will save $21.45 monthly during the second year. Yes, he will save $22.55 monthly during the second year.
suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest per year, componded continously, part b: in part a,suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 25. The annuity will extend from teh EOY 26 to EOY 33, what is the value of this annuity if teh interest rate and componding frquency in part a do not change
! Pls answer all ! bartleby 3 max question How much is the exact simple interest of P 6000 from February 28, 2000 to December 31, 2001with an interest rate of 8 %? How long in days should an amount of P 35000 with a 5 % exact simple interest would become P35556?
ou decided to go and apply for a credit card at your local financial institution.The Prime rate currently announced on June 1 was 3.25%. You have goodcredit history and a FICO score of 700. The lowest rate that they can offer toindividuals is a 18.99% APR for a credit card that gives cashback on purchasesand rewards. You were offered 21.99% APR for the credit card. How did thelender determine or calculate what rate they should offer you?