Homework#6

.pdf

School

San Diego State University *

*We aren’t endorsed by this school

Course

E330

Subject

Mathematics

Date

Jan 9, 2024

Type

pdf

Pages

Uploaded by ConstableSteel13076

Homework #6. 2.110 A single deposit made 30 years ago by your grandmother is worth $45,000 today. If the account earned interest at 10% per year, the amount she deposited was closest to: a. $2579 b. $3285 c. $4565 d. $8505 P = 45,000(P/F,10%,30) = $2578.50 Answer is (a) 2.111 An arithmetic gradient has cash flow of $1000 in year 4, $1200 in year 5, and amounts increasing by $200 per year through year 10. If you use the factor 200( P ∕ G ,10%,?) to find P in year 3, the value of n to use in the P ∕ G factor is a. 6 b. 7 c. 8 d. 9 Answer is (b) 2.113 For the diagram shown, the respective values of n to calculate the present worth in year 0 by the equation P 0 = 100( P ∕ A ,10%, n 1)( P ∕ F ,10%, n 2) are a. n 1 = 6 and n 2 = 1 b. n 1 = 6 and n 2 = 2 c. n 1 = 7 and n 2 = 1 d. n 1 = 7 and n 2 = 2

Answer is (a) 2.117 An enthusiastic new engineering graduate plans to start a consulting firm by borrowing $100,000 at 10% per year interest. The loan payment each year to pay off the loan in 7 years is closest to: a. $18,745 b. $20,540 c. $22,960 d. $23,450 A = 100,000(A/P,10%,7) = 100,000(0.20541) = $20,541 Answer is (b) 2.118 Charley, an engineer who believes in the “save now, play later” philosophy wanted to retire in 20 years with $1.5 million. At a 10% per year return on his investments, the amount he must invest each year (starting in year 1) to reach the $1.5 million goal is closest to: a. $26,190 b. $28,190 c. $49,350 d. $89,680 A = 1,500,000(A/F,10%,20) = 1,500,000(0.01746) = $26,190 Answer is (a)

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help