ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Answer the question no (c) = Future Value (F)= ? Answer the question no (D)= Present value (G) = ?arrow_forwardIn solving, indicate the Cash Flow Diagram and Solution 1. On January 1, 2005, a person's savings account was worth Php 200,000. Every month thereafter, this person makes a cash contribution of Php 676 to the account. If the fund was expected to be worth Php 400,000 on January 1, 2010, a.) What monthly rate of interest was being earned on this fund? b.) What is the nominal rate compounded monthly? c.) What is the equivalent effective interest rate per year? Write your answer in decimal form and round it off into 5 decimal places. References:arrow_forwardIn solving, indicate the Cash Flow Diagram and Solution 1. On January 1, 2005, a person's savings account was worth Php 200,000. Every month thereafter, this person makes a cash contribution of Php 676 to the account. If the fund was expected to be worth Php 400,000 on January 1, 2010, a.) What monthly rate of interest was being earned on this fund? b.) What is the nominal rate compounded monthly? c.) What is the equivalent effective interest rate per year? Write your answer in decimal form and round it off into 5 decimal places.arrow_forward
- Solve the following and draw the cash flow diagram From the given cash flow diagram, find the future value of the geometric gradient with unknown constant rate f at i = 0.111 compounded annually -rate of increase should be rounded of by 5 decimal places and final answer to 2 decimal places -the value in the graph is 5000 and 9900 Note: Do not use excelarrow_forwardDetermine the interest rate (i) that makes the pairs of cash flows shown economically equivalent. $ $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 II 1 2 Years j= ? 0 3 4 5 6 0 $2,625 $1,969 $1,477 HII 2 3 4 Years $3,500 1 $1,108 5 $831 6arrow_forward12) Use the model A = Pert, where A is the future value of P dollar invested at interest rater compounded continuously or n times per year for t years. If $9,000 is invested in an account earning 5.5% interest compounded continuously, determine how long it will take the money to double. Round up to the nearest year. %3Darrow_forward
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