GİRNE AMERICAN UNIVERSITY FACULTY OF ENGINEERING ENG ENG304 Engineering Economy Homework 1. If a company has an opportunity to invest $80000 now for 18 years at 16% per year simple interest or 8% per year compound interest, which investment should be made? 2. Calculate the present worth of an expenditure of $3800 per year for 15 years that starts 1 year from now if the interest rate is 12% per year? 3. The company is planning to borrow now $85000 at 10% per year. The company expects to repay the loan with eight equal annual payments at the end of each year, beginning 4 years after the loan is received. Find the amount of equal annual payments. 4. If annual deposits of $6500 are made into a savings account for 22 years beginning 1 year from now, how much will be in the fund immediately after the last deposit if the fund pays interest at a rate of 12% per year? 5. Calculate the present worth of a machine which costs $90000 initially and will have a $18000 salvage value after 11 years. The operating cost is $10000 at the end of yearl and amounts increasing by $800 each year. Use an interest rate of 9% per year. 6. What equal amounts of money will have to be deposited 5, 8 and 11 years from now, if you want to have S65000 in your account 15 years from now? Use an interest rate of 11% per year. 7. Calculate the present worth of a machine which costs $105000 initially and has a 10 year life with a $20000 salvage value. The operating cost of the machine is expected to be $6000 in year 1(end of_year) and $6600 in year 2, and amounts increasing by the 10% through its 10-year life. Use an interest rate of 12% per year. 8. What equal uniform annual payment for 10 years beginning 1 year from now would be equivalent to spending $11000 now, $6000 four years from now and $8000 nine years from now if the interest rate is 15% per year?
GİRNE AMERICAN UNIVERSITY FACULTY OF ENGINEERING ENG ENG304 Engineering Economy Homework 1. If a company has an opportunity to invest $80000 now for 18 years at 16% per year simple interest or 8% per year compound interest, which investment should be made? 2. Calculate the present worth of an expenditure of $3800 per year for 15 years that starts 1 year from now if the interest rate is 12% per year? 3. The company is planning to borrow now $85000 at 10% per year. The company expects to repay the loan with eight equal annual payments at the end of each year, beginning 4 years after the loan is received. Find the amount of equal annual payments. 4. If annual deposits of $6500 are made into a savings account for 22 years beginning 1 year from now, how much will be in the fund immediately after the last deposit if the fund pays interest at a rate of 12% per year? 5. Calculate the present worth of a machine which costs $90000 initially and will have a $18000 salvage value after 11 years. The operating cost is $10000 at the end of yearl and amounts increasing by $800 each year. Use an interest rate of 9% per year. 6. What equal amounts of money will have to be deposited 5, 8 and 11 years from now, if you want to have S65000 in your account 15 years from now? Use an interest rate of 11% per year. 7. Calculate the present worth of a machine which costs $105000 initially and has a 10 year life with a $20000 salvage value. The operating cost of the machine is expected to be $6000 in year 1(end of_year) and $6600 in year 2, and amounts increasing by the 10% through its 10-year life. Use an interest rate of 12% per year. 8. What equal uniform annual payment for 10 years beginning 1 year from now would be equivalent to spending $11000 now, $6000 four years from now and $8000 nine years from now if the interest rate is 15% per year?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:GİRNE AMERICAN UNIVERSITY
FACULTY OF ENGINEERING
ENG ENG304
Engineering Economy
Homework
1. If a company has an opportunity to invest $80000 now for 18 years at 16% per
year simple interest or 8% per year compound interest, which investment should be
made?
2. Calculate the present worth of an expenditure of $3800 per year for 15 years that
starts 1 year from now if the interest rate is 12% per year?
3. The company is planning to borrow now $85000 at 10% per year. The company
expects to repay the loan with eight equal annual payments at the end of each year,
beginning 4 years after the loan is received. Find the amount of equal annual
payments.
4. If annual deposits of $6500 are made into a savings account for 22 years beginning
1 year from now, how much will be in the fund immediately after the last deposit if
the fund pays interest at a rate of 12% per year?
5. Calculate the present worth of a machine which costs $90000 initially and will
have a $18000 salvage value after 11 years. The operating cost is $10000 at the
end of yearl and amounts increasing by S800 each year. Use an interest rate of 9%
per year.
6. What equal amounts of money will have to be deposited 5, 8 and 11 years from
now, if you want to have S65000 in your account 15 years from now? Use an
interest rate of 11% per year.
7. Calculate the present worth of a machine which costs $105000 initially and has a
10 year life with a $20000 salvage value. The operating cost of the machine is
expected to be $6000 in year 1(end of year) and S6600 in year 2, and amounts
increasing by the 10% through its 10-year life. Use an interest rate of 12% per year.
8. What equal uniform annual payment for 10 years beginning 1 year from now
would be equivalent to spending $11000 now, $6000 four years from now and
$8000 nine years from now if the interest rate is 15% per year?
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