Steven has struck a deal with his dad to buy his car when he can afford to. The car is valued at $55 000 today but depreciates at a continuously compounding rate of 1% per month (i.e. 1 - d d = e-0.01). Steven has $9 000 in a bank account and plans to add $120 each month end. The bank pays interest at a continuously compounding rate of 1% per month ( i.e. 1 + r = 0.01). (a) Formulate the value of the car as a finite difference equation and solve by calculating

The capital share in Peru is a = 2/3. Relative to last year, capital in- creased by 20%, labor hours increased by 10%, and total output increased by 25%. Which is the closest approximation number for the growth in Total Factor Productivity, A? (a) -5% (b) 11.6% (c) 8.3% (d) 0%

1.28 Use economic equivalence to determine the amount of money or value of i that makes the following statements correct. (a) $5000 today is equivalent to $4275 exactly 1 year ago at i =% per year. (b) A car that costs $28,000 today will a year from now at i = cost $ 4% per year. (c) At i = 4% per year, a car that costs $28,000 now, would have cost $ one year ago.

Subject: Engineering Economics A person is just 30 years old. He plans to invest an equal sum of Rs. 20,000 every year for the next 30 years from the end of next year. The bank gives 10% interest compounded annually. Find the maturity value of his account when he is 60 years old.