Develop your concept that what will be the effect of inflation on money if it is not invested. Also define inflation, Deflation and hyperinflation. Subject: construction management
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- Q4: Develop your concept that what will be the effect of inflation on money if it is not invested. Also define inflation, Deflation and hyperinflation. Subject: construction managementQ4: Develop your concept that what will be the effect of inflation on money if it is not invested. Also define inflation, Deflation and hyperinflation. Civil Engineering Subject= Construction ManagementQ3:How much money must you deposit in year 6 if you deposit $5000 now and you want to have $12,000 at the end of year 11? Assume your deposits earn interest at 6% per year. [40 marks]
- A company wants to expand its manufacturing plant in 4 years. The engineer estimates the expenditure required now to be $8 million, but in 4 years, the cost will be higher by an amount equal to the inflation rate of 7%. If the company sets aside $7 million now into an account that earns interest at "x"% per year, what will "x" have to be in order for the company to have exactly the right amount of money for the expansion? 21 PM to search 221If you experience an 34 % annual inflation, how long does it take to see your present worth (money today) reduced in half? econProblem2. Josh created two cash flow diagrams shown at the bottom of this page. The cash flows for alternative B represent two life cycles of A. Calculate the annual worth value of each over the respective life cycles to demonstrate that they are the same. Use an interest rate of 10% per year. Alternative A Alternative B $1000 i = 10% per year $1000 1 3 2 3 4 5 6 Year Year $25 $25 $25 $25 $25 $25 $25 $25 $25 $4000 $5000 $5000 2.
- 2. Attach a complete solution. Draw the cash flow diagram. Suppose that P 4500 is deposited each year into a bank account that pays 8% interest compounded quarterly. How much would be accumulated in his fund by the end of the 4th year? The first payment occurs at time zero (now).9. A cash flow has the following income values: $100 at end of year 2, $200 at end of year 3, $300 at end of year 4, $500 at end of year 6, and $600 at end of year 7. Solve for the present value, P, of the cash flows by using only two interest factors. The interest rate is 11% per year.Engineering Economics Subject A cash flow series is increasing geometrically at the rate of 10% per year. The initial payment at time 3 is $10,000 with increasing annual payments ending at time 50. Interest rate is 15% compounded annually for the first 15 years and 5% compounded annually for the remaining 35 years. Find the present worth equivalent to this cash flow.
- ENGINEERING ECONOMICS Find the present value of installment payments of P10,000 now, P20,000 at the end of the first year, P30,000 at the end of the second year, P40,000 ate the end of the third year and P50,000 at the end of the fourth year, if the money is worth 10% compounded annuallyPart 2. Solve the following. a) A slow economy caused a company's annual revenues to drop from $530, 000 in 2008 to $386,000 in 2010. If the revenue is following an exponential pattern of decline, what is the expected revenue in 2012?Assume that you and your best friend each have $1000 to invest. You invest your money in a fund that pays 10% per year compound interest. Your friend invests her money at a bank that pays 10% per year simple interest. At the end of 1 year, what is the difference in the total amount of money for each of you ?