I. Exercises A. Exercise Direction: Find the present value of the following: Show your solution and write your answer in a sheet of paper. 1. Ph 40,000 due in two years at 3% compounded monthly 2. Ph 60,000 due in 3 years at 4% compounded monthly 8

I. Exercises A. Exercise Direction: Find the present value of the following: Show your solution and write your answer in a sheet of paper. 1. Ph 40,000 due in two years at 3% compounded monthly 2. Ph 60,000 due in 3 years at 4% compounded monthly 8

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

5th Edition

ISBN:9781305084766

Author:Saeed Moaveni

Publisher:Saeed Moaveni

Chapter20: Engineering Economics

Section: Chapter Questions

Problem 1P

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Concept explainers

Unit Conversion

Standard units are also called SI units. SI units are used for measuring a physical quantity satisfying certain conditions. There are two types of units: fundamental units and derived units. Fundamental units are physical quantities that are independent, that is, they do not depend on other quantities like mass, length, or time. There are plenty of quantities in our lives which need to be measured and compared. Measuring is the comparison of a particular physical quantity with its reference value. A unit is a measure of a fixed physical quantity. A physical quantity is the product of a unit and the numerical value we need to compare with.

Question

Given: Amount A, = Ph 50,000
%3D
Number of conversion periods n =98
The present value P is
Ph 50,000
P=
(1+0.04) 96
P= Ph 1,158.16
50.000 if invested at 4% interest compounded monthly.
II.
Exercises
A. Exercise
Direction: Find the present value of the following: Show
your solution and write your answer in a sheet of paper.
1. Ph 40,000 due in two years at 3% compounded monthly
2. Ph 60,000 due in 3 years at 4% compounded monthly
3. Ph 75,000 due in 5 years at 5% compounded montnly
8.
Compound I = 4% = 0.04

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