ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- A friend of yours bought a new sports car with a $5,000 down payment plus a $26,000 car loan that is financed at an interest rate of 0.25% per month for60 months. a. Calculate the required monthly loan payment on the car. b. How much does your friend still owe on the car loan immediately after she makes the 24th monthly payment? c. If, after the 24th payment, she decides to pay $300 more each month, how many months will it take her to payoff the remaining loan she owes? a) The required monthly Payment is $ (round to nearest cent) b. Your friend still owes on the car loan. (Round to the nearest dollar.) c. It will take her months. (Round-up to the nearest month)arrow_forwardLeon and Heidi decided to invest $2,500 annually for only the first eight years of their marriage. The first payment was made at age 25. If the annual interest rate is 12 percentage, how much accumulated interest rate and principal will they have at age 65?arrow_forwardA bond with a face value of $10,000 pays interest of 8% per year. This bond will be redeemed at its face value at the end of ten years. How much should be paid now for this bond when the first interest payment is payable one year from now and a 9% yield is desired?arrow_forward
- N 1. You need $3,000 to buy a new stereo for your car in 3 years. What value you must have now if the compounded annually return is 10%. 2. Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth of the savings. If the estimated rate of return on the trust fund is 8%?+arrow_forwardAre the following cash flow diagrams economically equivalent if the interest rate is 8% per year? The left-hand diagram's discounted value at the EOY 0 is __ M. Please don't use excel and please show your work.arrow_forwardplease solve with full detail so I can understand, Engineering Econarrow_forward
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