ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- A firm has borrowed $5,000,000 for 5 years at 10% per year compound interest. The firm will make no payments until the loan is due, when it will pay off the interest and principal in one lump sum. What is the total payment? Assume that your answer is in units of $. Only input the numeric value of your calculation.arrow_forwardCompound Interest. Determine the future value of $700 which is invested at10% interest which is compounded early after 8 years.arrow_forwardCompute the number of years (t) if future value (FV) = $13514, present value (FV) = $1186, and interest rate (r) = 11.8%,.arrow_forward
- A woman deposits $9000 at the end of each year for 10 years in an account paying 3% interest compounded annually. (a) Find the final amount she will have on deposit. (b) Her brother-in-law works in a bank that pays 2% compounded annually. If she deposits money in this bank instead of the other one, how much will she have in her account? (c) How much would she lose over 10 years by using her brother-in-law's bank?arrow_forwardYou purchased a winning ticket for a $5 million lottery which pays $500,000 immediately and the rest in 9 annual installments. A finance company called and offered you $3 million for it. Would you accept the offer if the rate is 10%arrow_forward1.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000 2.The simple interest on a $6500 loan at 15% for 9 months is. a)$731.25 b)$7312.50 c)$73.13 d)$2925 3. If we deposit $5000 in an account that pays 9% per year. Find the amount of simple interest earned during 8 months. a)$3000 b)$300 c)$360 d)$3600 4.The simple interest charged on a loan amount of $8500 for 2 years was $1275. What rate of interest was charged a)22.5% b)3.75% c)15% d)7.5% 5.What rate of simple interest will make a principal double itself in 6 years. a)16.67% b)8.33% c)33.33% d)4.16% 6.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000arrow_forward
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