ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- If the nominal interest rate is 5%, how much is P2,000 worth in 10 years in a continuously compounding account?arrow_forwardA geometric gradient that increases at f= 5% per year for 15 years is shown in the accompanying diagram. The annual interest rate is 10%. What is the present equivalent value of this gradient? AClick the icon to view the diagram for geometric gradient values. Click the icon to view the interest and annuity table for discrete compounding when i= 5 % per year. Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year. 4... The present equivalent value of the gradient is $ (Round to the nearest dollar.)arrow_forwardSolve and Draw the Cash Flow Diagram A housewife bought a brand new washing machine costing php 15,000 if paid in cash. however, she can purchase it on installment basis to be paid within 10 years. if money is worth 8.77 % compounded annually, what is her yearly amortization if all payments are to be made at the beginning of each year?arrow_forward
- To have his own pad, James decided to deposit Php20,000 at the end of each month in a bank paying 7% compounded monthly. How much would he expect to have in three years?arrow_forwardYou borrow $20,000 to purchase a car and will repay the loan in uniform monthly payments for the next 48 months. The first payment is due one month after the purchase of the car. If the interest rate is 1% per month, determine the amount of your monthly car payment. Assuming you make each payment as scheduled, how much total interest will you pay over the four-year period?arrow_forwardA recent government study reported that a college degree is worth an extra Php 35947 per quarter income compare to high school graduate. If the interest is 6 % per year compounded quarterly and you work for 31 years, what is the future compound amount of this extra income? Round your answer to 2 decimal places.including cash flow diagramarrow_forward
- The interest rate given is 12% compounded per year, first convert it to interest compounded monthlyarrow_forwardDetermine the present worth of the following cash flows if the interest rate is 4% per year: Year End Cash Flow ($) Click the icon to view the interest and annuity table for discrete compounding when the MARR is 4% per year. PW(4%) = $ (Round to the nearest dollar.) 0 - $8,000 1 - $15,000 (...) 2 $40,000 3 $45,000 4 - $2,000arrow_forward₱12000.00 was invested in a bank at 4% compounded annually for six years. The principal was took out and the interest earned was invested at the same rate compounded semi-annually for another six years. What is the amount will becomes after another six years? Ans: ₱3585.51arrow_forward
- The Lahiri family rents a room in their home on Airbnb. They deposit all of the money that they earn into a vacation fund that earns 7% that i are shown below. Year Revenue $1,200 $850 3 $1,300 4 $1,800 $800 In year six, they did not rent their room due to extensive remodeling. How much would be in the account at the end of year 6?arrow_forwardJack Townsend is a soda pop “addict” and wonders how much money he could accumulate if he stopped drinking soda pop and deposited the $90 per month he spends on the stuff into a savings plan. If Jack is 20 years old, what amount should he have at retirement, 50 years from now, if he deposited $90 at the end of each month and his savings plan earned 6.75% compounded monthly?arrow_forward
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