(a)
Find the future value for
(a)
Answer to Problem 1P
The future value for
Explanation of Solution
Given data:
The present cost
The normal interest rate
The number of years
The number of compound period
Formula used:
Formula to calculate the future value is,
Here,
Calculation:
To calculate the future value:
Substitute
Therefore, the future value for
Conclusion:
Thus, the future value for
(b)
Find the future value for
(b)
Answer to Problem 1P
The future value for
Explanation of Solution
Given data:
The present cost
The normal interest rate
The number of years
The number of compound period
Formula used:
Formula to calculate the future value is,
Here,
Calculation:
To calculate the future value:
Substitute
Therefore, the future value for
Conclusion:
Thus, the future value for
(c)
Find the future value for
(c)
Answer to Problem 1P
The future value for
Explanation of Solution
Given data:
The present cost
The normal interest rate
The number of years
The number of compound periods per year
Formula used:
Formula to calculate the future value is,
Here,
Calculation:
To calculate the future value:
Substitute
Therefore, the future value for
Conclusion:
Thus, the future value for
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Chapter 20 Solutions
EBK ENGINEERING FUNDAMENTALS: AN INTROD
- 3. On january 1, 2016, Diana opened an account with a P 50,000 deposit. On january 1, 2017, she withdraws P 25,000 and on january 1, 2019 she deposits P 75,000. If the account earns 7.5% interest, compounded yearly, and no further deposits or withdraws are made, what was the balance on january 1, 2021?arrow_forwardWhich is a better choice in buying a washing machine worth P12,700.00? * A. Avail of the instalment plan which requires payment of #850.00 a month for 18 months B. Borrow from a lending company that charges 12 1/4% simple interest payable in 1 year and 6 months C. Borrow from a lending firm offering 12% compounded quarterly payable in 1 year and 6 months D. Borrow from a lending firm offering 12% compounded monthly payable in 1 year and 6 monthsarrow_forwardDetermine the accumulated and the discounted value of $1000 over 55 days at 7% using both ordinary and exact simple interest. (Do not round intermediate calculations. Round your answers to 2 decimal places.) S Ordinary interest S Exact interest $arrow_forward
- $20,000.00 borrowed today for 2 years at 5% Compound Interest will result in how much total interest (I) at the end of Year 2? a) $2000.00 b) $2050.00 c) $20,000.00 d) $22,000.00arrow_forwardCompute the future value of a $1500 deposit, after eight years, in an account that pays a simple interest rate of 7%. How much interest will be paid to this account?arrow_forwardGiven: C, = 10,000.00 C, = 500.00 n = 5 years Tabulate the annual depreciation charge and book value after 5 years so that you can identify what method has the largest annual depreciation charge: a) SLM b) SFM (assume 10% interest) c) DBM d) SYDMarrow_forward
- 4. For a deposit of $ 1023 at 7.8% interest compounded continuously over 4 years, find the interest earned? 5. Irish is offered to invest in a business firm that will make her money earn 6% compounded bimonthly. How long will it take for her money to triple?arrow_forward4. P60,000.00 is placed in an account at 4% compounded annually for 2 years. It is then withdrawn at the end of the two years and placed in another bank at the rate of 5% compounded semi-annually for 4 years. What is the balance in the second account after the 4 years?arrow_forwardDetermine the effective interest rates corresponding to the nominal rates: (a) 7% compounding monthly, (b) 16.5% compounding monthly, (c) 6% compounding semiannually, (d) 9% compounding quarterly.arrow_forward
- >/ The following table represents a depreciation case. Complete the table End of year Depreciation Charge 0 1 2 3 4 Book Value During the year at the end of the year $5000 $400 $1000arrow_forwardYour future company has purchased a machine and has entered into a contract that requires the company to pay $2000 each year for the upgrade of machine components at the end of years 6, 7, and 8. In anticipation of the upgrade cost, your company has decided to deposit equal amounts ( X ) at the end of each year for five years in a row in an account that pays i = 6% . The first deposit is made at the end of the first year. What is the value of X?arrow_forward#20,000.00 borrowed today for 2 years at 5% compound interest will result in how much total interest at the end of Year 2?arrow_forward
- Engineering Fundamentals: An Introduction to Engi...Civil EngineeringISBN:9781305084766Author:Saeed MoaveniPublisher:Cengage Learning