The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $525,000. If the gradient increase each year, G, is $1000, determine the cash flow in year 1 at an interest rate of 8% per year. Cash flow in year one is ___.

The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $525,000. If the gradient increase each year, G, is $1000, determine the cash flow in year 1 at an interest rate of 8% per year. Cash flow in year one is ___.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Find the exact simple interest on P 10,000.00 for the period from January 12 2016 to November 23…

Q: For the cash flows shown in the diagram, determine the value of x and 2x that will make the future…

A: The future value of an uneven cash flow series will be calculated as the sum of the future values…

Q: How many years are required for P1,000.00 to increase to P2,000 if invested at 9% per year…

A: Interest refers to the amount in excess of the principal amount paid back by the borrower to the…

Q: A civil engineer planning for her retirement places 9% of her salary each year into a…

A: A civil engineer has a salary of $190,000 at the end of year 1 and expects it to grow by 2% each…

Q: An arithmetic cash flow gradient series equals $350 in year 1, $450 in year 2, and amounts…

A: The present worth represents the current value of a series of future cash flows or payments…

Q: Jones plans to deposit $500 at the end of each month for 10 years at 12% annual interest, compounded…

A: Given that, Jones plans to deposit $500 at the end of each month for 10 years at 12% annual…

Q: A new iphone model is offered at Php72,000 cash but can be acquired through installment at an…

A: Cash price of the iphone =72000 Interest rate on monthly installment is 2% compounded per month. We…

Q: John plans to make 10 equal annual deposits starting one year from now into a fund that pays an…

A: Let the John annual deposit starting one year from now is A i =10% The cashflow diagram is shown…

Q: Company A plans to set aside $150,000 now for possibly replacing its large synchronous refiner…

A: Future value describes the concept that a sum of money today will be worth more in the future due to…

Q: A small company heats its building and will spend $9,592 in year 1 on natural gas for this purpose.…

A: Given Cost of natural gas in year 1 = $9592 The annual increment in the cost of natural gas is 9%…

Q: Standby power for water treatment facilities is provided by diesel-powered generators. As an…

A: Present worth is the current value of some amount of money in the future.

Q: A civil engineer planning for her retirement places 11% of her salary each year into a…

A: First-year salary of the civil engineer =190,000 Percentage of saving out of salary=11 The expected…

Q: Find the equivalent of present worth (t = 0) of a uniform series of $4550 for 8 years, if the…

A: The current value of a series of future cashflow means the present worth or present value, it is…

Q: Engineer John places 10% of his salary each year into a high-technology stock fund for his…

A: Future worth or future value is the value of certain investment projects that an individual or firm…

Q: How much money should be deposited each year for 10 years starting 1 year from today, if you wish to…

A: Future worth/value FV is the value of an asset at a particular date. It measures the nominal future…

Q: The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is…

A: Cash flow in year 1 would be equal to the sum of constant annual payment amount plus the gradient…

Q: An interest rate of 2% per quarter, compounded continuously, is closest to an effective semiannual…

A: Effective interest rate formula when nominal interest rate is compounded continuously: i=erl-1 Here…

Q: A mechanical contractor is trying to calculate the present worth of personnel salaries over the next…

A: Future cash flows or sums of money have a present value (PV) if a specific return rate is applied.…

Q: An arithmetic cash flow gradient series equals $450 in year 1, $550 in year 2, and amounts…

A: An arithmetic cash flow gradient series is a series of cash flows in which each cash flow is…

Q: A bond with a face value of $10,000 pays interest of 7% per year. This bond will be redeemed at its…

A: Formula used- Pv = fv(p/f,i,n) + coupoon payment(p/a,i,n)

Q: An arithmetic cash flow gradient series equals $650 in year 1, $750 in year 2, and amounts…

A: here we find the Present Worth of linear gradient which are as follow-

Q: David plans to lease a new car for 36 months. To sign the lease, he needs to make an upfront payment…

Q: A civil engineer planning for her retirement places 11% of her salary each year into a…

A: Future value is the value of an asset at a specific date. It measures the nominal future sum of…

Q: How much money would you have in your bank account ten years from now if you make one single deposit…

A: The nominal interest rate is the stated interest rate on a loan or investment without accounting for…

Q: A deposit is made at t=0 into an investment account. Annual withdrawals are taken out over over a…

A: Present worth is the value of an expected income stream at the date of the valuation.

Q: At year 0, your sustainable civil engineering professional group makes a deposit to a savings…

A: Initial Deposit made = $6000 Periodic deposits made every two years = 1500 Originally decided…

Q: Determine the equivalent annual worth for years 1 through 10 of a uniform series of payments of…

A: Equivalent Annual Worth (EAW), also known as Annual Equivalent Worth (AEW) or Equivalent Uniform…

Q: Assume that 25 years ago your dad invested $300,000, plus $34,000 in years 2 through 5, and $49,000…

A: Given; Amount invested= $300000 Amount invested from 2 year to 5 years= $34000 Amount invested from…

Q: astute investor; all your money earns at 20% per vear. If you have already saved $9500, the amount…

A: here we find the right option of the given by following method given below as;

Q: An annual deposit of A1-$1,500 in a saving account is made for 6 years starting year 1. In year 9, a…

A: A1 = $1500 n1 = 6 years In year 9 - OTD - $3500 In year 11 - OTW - $2500 From year 12: A2 = ? n2 =…

Q: Required information A friend tells you she has saved for seven years and has a present sum of…

A: Compound Interest can be defined as interest earned on interest. It can be compounded daily,…

Q: What is the Present Worth of $2,000 costs in year one, increasing by $500 per year for years 2 thru…

A: In economics, present value refers to the current value of a future stream of cash flows. The future…

Q: Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one is…

A: It can be defined as a form of cash flow in which the series of the cash by a constant amount at the…

Q: How much must you deposit each year into your retirement account starting now and continuing through…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: The Pedernales Electric Cooperative estimates that the present worth now of income from an…

A: Fundamentally, engineering economics entails defining, estimating, and evaluating economic…

Q: A pharma company uses spectrophotometers to analyze the concentration of products. One of the…

A: Fixed costs include any number of expenses, including rental lease payments, salaries, insurance,…

Q: How many years are required for P1,500 to increase to P2,500 if invested at 8% per year compounded…

A: The compounded annually is the value that is present worth and future worth. The present worth is…

Q: A small company heats its building and spends $8000 per year on natural gas for this purpose. Cost…

A: The objective of the question is to calculate the total annual equivalent expense for operating and…

Q: A large automobile manufacturer has developed a continuous variable transmission (CVT) that…

A: Determining CVT AffordabilityWe need to compare the fuel cost savings over eight years with the…

Q: For the cash flows shown in the diagram, determine the value of x and 2x that will make the future…

A: The formula for the future value is given as: => F = P(1+R)t Where F : future valueP : present…

Q: XYZ rapid prototyping (RP) software costs $29,000 and lasts one year, and will be expensed (i.e.,…

Q: You deposit $10,000 in an investment account that earns a nominal interest rate of 12% per year…

A: Future value describes the projected worth of an asset, investment, or sum of money at a specified…

Q: An award is being established, and it will pay $9,200 every four years, with the first installment…

A: Perpetuity:In financial economics, when trying to establish the present worth of a given cash flow…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Understand the Problem:

VIEW

Step 2: Use the Future Worth Formula:

VIEW

Step 3: Solve for A1:

VIEW

Step 4: Calculate A1

VIEW

Solution

VIEW

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Combining Factors and Spreadsheet Functions 3.36 For the cash flows shown, determine the present worth in year 0, if the interest rate is 12% per year. Year Cash Flow, $ 12 3 4 5 6 7 8 9 10 13 13 13 13 16 19 22 25 28 31
Payment of $883 due 2 months ago and $435 due today are to be repaid by a payment of $400 one month from today and the balance in 11 months from now. If money is worth 6% compounded monthly, and the agreed focal date is 11 months from today. What is the size of the final payment?
Nippon Steel's expenses for heating and cooling a large manufacturing facility are expected to increase according to an arithmetic gradient beginning in year 2 . If the cost is$550,000this year (year 0 ) and will be$550,000again in year 1 , but then it is estimated to increase by$42,000each year through year 12 , what is the equivalent annual worth in years 1 to 12 of these energy costs at an interest rate of11%per year? The equivalent annual worth is determined to be$
Find the value of x that makes the equivalent annual worth in years 1 through 8.00 equal to $700 per year. Use an interest rate of 9.00% per year. The cash flows in year 0 and year 8.00 has an unknown value x, and 1 through 7.00 has an annual worth of $700. (Round the final answer to three decimal places.) The value of x is determined to be $
How much must you deposit each year into your retirement account starting now and continuing through year 9 if you want to be able to withdraw $80,000 per year forever, beginning 29 years from now? Assume the account earns interest at 10% per year.
Can someone please help me to solve this problem showing neat hand written work and all formulas as well as following directions and showing cash flow diagrams drawn by hand please and thank you!!
Draw the cash flow diagram with your solution. Determine the exact simple interest on P5,000 invested for the period from January 15, 1996 to October 12, 1997, if the rate of interest is 18%.
Your parents make 25 equal annual deposits of $2089 each into a bank account earning 4% per year compounded quarterly. The first deposit will be made one year from today. How much money can be withdrawn from this account immediately after the 25th deposit?
Kate deposits P5,000 to her bank account every year when she was in high school for four years to prepare for her college degree. She took an engineering course and since then, she stopped depositing to her bank account. Right after graduation (she graduated on time), she got a job that pays P250,000 a year. If she continues to deposit to the same bank account P50,000 every year for 10 years, calculate the future worth after 30 years if the deposits are made at the end of each year and the bank pays 2% interest per year. ANSWER: 1,041,934.60 PLEASE SHOW YOUR CORRECT AND COMPLETE SOLUTION TO THIS PROBLEM NEATLY . THANK YOU!
Q6. Construct a cash flow diagram to find the equivalent present worth of a future outflow of $50,000 in year 5 at an interest rate of 5% per year 79
How much must you deposit each year into your retirement account starting now and continuing through year 11 If you want to be able to withdraw $90,000 per year forever, beginning 27 years from now? Assume the account earns interest at 13% per year. The amount to be deposited is determined to be $ Prev 5 of 6 Next >
A 20-year-old student decided to set aside $100 on his 21st birthday for investment. Each subsequent year through his 55th birthday, he plans to increase the investment on a $100 arithmetic gradient. He will not set aside additional money after his 55th birthday. If the student can achieve an 8% rate of return, what is the future worth of the investments on his 65th birthday?