ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Solve each of the problem. Write the question, required
value, given, solution.
|A student deposits Php 1,500 in a 9% account today.
He intends to deposit another Php 3,000 at the end of two
years. He plans to purchase in five years his favorite
shoes Php 5,000. Calculate the money that will be left in
his account one year after the purchase
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- Q 2 pleasearrow_forwardA person deposits P10,000 each year for 9 years. He then withdraws annually from the bank P5,000for 8 years starting 1 year after the 9th deposit is made.Note: Make a cashflow diagram.arrow_forwardIt 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 answerarrow_forward
- Show complete solution (please write eligibly) 1. Find the uniform annual amount that is equivalent to a uniform gradient series in which the first year’s payment is $500, the second year’s payment is $600, the third year’s payment is $700, and so on, and there are a total of 22 payments. The annual interest rate is 11%. Round answer to 2 decimal places. Use any of the following formula to solve the problemarrow_forwardECONOMICS UPVOTE WILL BE GIVEN. PLEASE WRITE THE SOLUTIONS LEGIBLY. NO LONG EXPLANATION NEEDED. Shala Co. is making a decision about investing in new technology. It currently expects to earn Php 100,000,000 in its lifetime. If it invests in brand-new equipment today, its expected earnings will permanently increase by 5% per day. What is the expected value of investing in the new equipment?arrow_forwardAccarrow_forward
- Show complete solution (please write eligibly) 1. Find the uniform annual amount that is equivalent to a uniform gradient series in which the first year’s payment is $500, the second year’s payment is $600, the third year’s payment is $700, and so on, and there are a total of 22 payments. The annual interest rate is 11%. Round answer to 2 decimal places.arrow_forwardErwin is 27 years old and he saw a bank offering a time deposit plan with 6% interest. He does not know how often the bank calculates interest but he is interested. If he plans to take the offer and wants a sum of Php 20,000 in 10 years, how much should he start his deposit? 11,000 pesos 10,000 pesos O 12,000 pesosarrow_forwardif rate is asked, your input should be in percentage.arrow_forward
- Ramoncito deposited P15,000.00 today and he deposited the same equal amount each month for the next 9 months. Interest is 7% compounded monthly. a. How much is the value of these 10 equal deposits after 9 months from today? b. If Ramoncito failed to pay the last two monthly payments (8th and 9th), how much should he pay the bank a single amount of 14th month? show formula used and systematic solutionarrow_forward3. Ramoncito deposited P15,000.00 today and he deposited the same equal amount each month for the next 9 months. Interest is 7% compounded monthly. a. How much is the value of these 10 equal deposits after 9 months from today? b. If Ramoncito failed to pay the last two monthly payments (8th and 9th), how much should he pay the bank a single amount of 14th month?arrow_forwardOrdinary annuity payment. Fill in the missing annuity in the following table for an ordinary annuity stream: Number of Payments or Years 6 21 33 15 Annual Interest Rate 9% 4% 6% 10% Future Value $0.00 $24,000.00 $0.00 $98,433.34 Annuity (Round to the nearest cent.) $ (Round to the nearest cent.) $(Round to the nearest cent.) (Round to the nearest cent.) Present Value $24,000.00 $0.00 $150,000.00 $0.00arrow_forward
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