The father of a Junior High School Student wants to make sure that his son will be able to enroll and finish an engineering course after high school. To secure the future of his son, he plans to make deposits of P50,000 in a bank account every quarter for 5 years. The deposits will be made at the start of the periods. How much money can his son withdraw by the end of the 6th year if the money earns an interest of 10% compounded semi-annually?
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ENGINEERING ECONOMY
UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS LEGIBLE. FOLLOW THE INSTRUCTIONS CAREFULLY.
Draw CASH FLOW DIAGRAMS for the GIVEN AND REQUIRED/FIND.
Begins the solutions by writing the equations/formulas.
Use 2 decimal places and Box the final answer.
The father of a Junior High School Student wants to make sure that his son will be able to enroll and finish an engineering course after high school. To secure the future of his son, he plans to make deposits of P50,000 in a bank account every quarter for 5 years. The deposits will be made at the start of the periods. How much money can his son withdraw by the end of the 6th year if the money earns an interest of 10% compounded semi-annually?
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Solved in 4 steps
- Answer the following questions by including the appropriate cash flow diagrams, solution, and final answer. 1. A father decides to establish a savings account for his child’s college education on the day his son is born. Any money put into the account will earn an interest rate of 10%. The father will make a series of annual deposits in equal amounts from the child's 1st birthday through the 18th birthday so the child can make four annual withdrawals from the account in the amount of Php 200,000 on each of his 18th, 19th, 20th, and 21st birthdays. Assuming that the first withdrawal will be made on the child’s 18th birthday, calculate the required 18 equal annual deposits.Explain the market of loanable funds and your role as a A. borrower when you buy your next vehicle AND B. saver after selling your first home and profiting $100,000. • You are opening your own small business. You will need the capital to begin your business plan. Utilizing chapter 22 with figure 22.2. consider and explain your timeline of production for your small business.Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions. Draw time lines for: (a) a $2000 lump sum cash flow at the end of year 4, (b) an ordinary annuity of $1000 per year for 5 years, and (c) an uneven cash flow stream of -$450, $1000, $650, $850 and $500 at the end of years 0 through 4.
- Solve for each problems. Show your solution legible and neatly. Write the question, the given(also what is the given?), what to find and a cash flow diagram. Answers should be in 2 decimal places, unless stated otherwise. Solution should be hand-written. Question can be hand-written or type-written. Answer should be in 2 decimal places. A man borrowed P300,000 from a bank and agreed to pay the loan at the end of a month. The bank discount the loan and give him P250,000. What is the rate of discount?Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions. Draw time lines for (a) a $2000 lump sum cash flow at the end of year 4, (b) an ordinary annuity of $1000 per year for 5 years, and (c) an uneven cash flow stream of -$450, $1000, $650, $850 and $500 at the end of years 0 through 4. What is the future value of an initial $1000 after 5 years if it is invested in an account paying 5% annual interest? What is the present value of $1000 to be received in 4 years if the appropriate interest rate is 5%? We sometimes need to find out how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales for 2020 is $1000 and expected to grow…ENGINEERING ECONOMY UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS LEGIBLE. FOLLOW THE INSTRUCTIONS CAREFULLY. Draw CASH FLOW DIAGRAMS for the GIVEN AND REQUIRED/FIND. Begins the solutions by writing the equations/formulas. Use 2 decimal places and Box the final answer. Five friends plan to establish a consulting firm after 5 years. The plan is for each to make semi-annual deposits of P15,000 in their respective bank accounts starting at the end of the first semester after the agreement up to the 5th year. All deposits are to be made every end of the periods. One of them is not capable of starting at the same time with everyone because of a present obligation but promised to start her deposits by the end of the first semester after the second year until the 5th year. How much should she deposit in equal amounts to save as much as each of her friends if money is worth 14% compounded semi-annually?
- (Solving for r with annuities) Nicki Johnson, a sophomore mechanical engineering student, receives a call from an insurance agent, who believes that Nicki is an older woman ready to retire from teaching. He talks to her about several annuities that she could buy that would guarantee her an annual fixed income. The annuities are as follows If Nicki could earn 11 percent on her money by placing it in a savings account, should she place it instead in any of the annuities? Which ones, if any? Why? a. What rate of return could Nicki earn on her money if she place it in annuity A with $6500 payment per year and 16 years duration?(Solving for r with annuities) Nicki Johnson, a sophomore mechanical engineering student, receives a call from an insurance agent, who believes that Nicki is an older woman ready to retire from teaching. He talks to her about several annuities that she could buy that would guarantee her an annual fixed income. The annuities are as follows in the popup window: LOADING... . If Nicki could earn 11 percent on her money by placing it in a savings account, should she place it instead in any of the annuities? Which ones, if any? Why? a. What rate of return could Nicki earn on her money if she place it in annuity A with $7,000 payment per year and 10 years duration? nothing% (Round to two decimal places.) Help Me Solve ThisView an Example Get More Help Clear All Check Answer Data Table ANNUITY INITIAL PAYMENT INTO ANNUITY (AT t = 0) AMOUNT OF MONEY RECEIVED PER YEAR DURATION OF ANNUITY (YEARS) A $40,000…THIS IS A SCENARIO QUESTION NOT A WRITING ASSIGNMENT. ANSWER THIS QUESTION WITH THE MIND OF A FINANCIAL ADVISOR OR KNOWLEDGE. First, if I were to offer you $5,000 today or $10,000 10 years from now, which would you take based on the time value of money? Or would you need some additional information in order to answer that question? If so, what information would you like to have? Second, time value of money is based on the ability to grow money - to create wealth through investing. If I made you the above offer, in addition to considering the time value of money, what other factors might influence your decision to take cash now or to wait to receive cash in the future?
- Suppose your first job pays you Php 300,000 annually. Answer the following questions assuming (a) you are unmarried, and (b) you are married with two young children. Let see how your allocation change. What percentage should your cash reserve contain?A father wants to set up a bank account that will pay his daughter $18,000 at the end-of-quarter (EOQ) 4 and $30,000 at EOQ 8. He will fund this account by making quarterly payments of $X from the present (time zero) through EOQ 7. a. Draw a cash-flow diagram from the father's viewpoint. b. If the quarterly percentage rate is (form number%), what is the value $X that must be deposited into the account?In the following exercises and problems you will be able to:• model investment and annuity problems;• explain the difference between sequences and series;• solve exercises applying concepts of the sum of sets of terms of a sequence, and• solve problems related to annuities using sequences or seriesIn the case that the result is decimal, you will round it to two decimal places. 3. The new parents decide to invest $ 100 a month in an annuity for their young daughter. The account will pay 5% interest per year, which is compounded monthly. How much will be in the child's account when he turns eighteen?