4. Use the cash flow diagranm below to calculate the amount of money in yearthat is equivalent to all the cash flows shown, if the interest rate is 12%5.per year.2 346 7 8 9 10 11 12 13 Year$1000$2000

Given:- interest rate=12% year =5 To find:- amount of money in year 5

Answered: 4. Use the cash flow diagram below to…

4. Use the cash flow diagram below to calculate the amount of money in yea 5 that is equivalent to all the cash flows shown, if the interest rate is 12% per year.

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

5th Edition

ISBN:9781305084766

Author:Saeed Moaveni

Publisher:Saeed Moaveni

Chapter20: Engineering Economics

Section: Chapter Questions

Problem 31P

See similar textbooks

Related questions

Q: Assume that you and your best friend each have $1000 to invest. You invest your money in a fund that…

A: Given data: Po is the principal (starting amount)=$1000 Compound interest =10% per year. Simple…

Q: If $280 is deposited in a savings account at the beginning of each year for 14 years and the account…

Q: 1.You deposit $50,000 into a fund that pays 5% per year compounded annually. You plan to make the…

A: Given, P = $50000 R = 5% per annum

Q: Calculate the equivalent present worth (PW) of the following cash flows. Use an interest rate of 8%…

A: Given: interest rate, r=8%

Q: Determine the present worth of the following cash flows based on an interest rate of 6.76% per year,…

Q: For a given interest rate, simple interest varies jointly as principal and time. If P3000.00 left in…

A: Given Data, When Principal = 3000 , Intrest earned is 720 for a Period of 24months . Our aim is to…

Q: You need P4,000 per year for four years to go to college. Your father invested P5,000 in 7% account…

A: Given: The invested amount is 5000. The interest is 7%. The withdrawal amount is 4000.

Q: i= 3% A = $2,500 n= 8

Q: If P35, 000 is deposited now into a savings account that earns 6% per year, what uniform annual…

Q: A man borrowed P8,000 from a bank that charges 5.5 % interest in advance. He received P7,650 from…

Q: Copy of Find the amount at the end of 5 years and 9 months if P9 000 is invested at 20% compounded…

A: Given, Principle (P) = P9000 Interest rate (R) = 20% or 0.20 Number of compounding period (n) = 4…

Q: What is the equivalent present worth of the cash flow given in the accompanying figure? Assume i =…

A: Cash Flow Diagram of the given problem:

Q: Assume the rate of investment is given by the function I(t) =lnt. Compute the total capital…

Q: 2. When compounded quarterly P12,000 becomes P 20,415.23 after 4 yrs. What is the nominal rate of…

A: step 1-

Q: Q3): Income from an operation has been decreasing uniformly for 5 years. If income in year 1 was…

Q: lucy heartfilia by a television set for a merchant who offers p25,000 at the end of 60 days she…

A: Given:- The final price of the television at the end of 60 days = p25,000 The simple interest on the…

Q: 1. Suppose an engineer is considering a purchase of equipment that is expected to be obsolete in…

Q: According to the Descartes' rule, the number of positive i* value for the following cash flow is:…

Q: Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years.…

Q: • A man secured a P 9,178 loan at 3 % interest rate. Find the annual amortization to extinguish it…

A: Given data- Loan amountS=P9,178Rate of interest i=3%Timen=2yrs. To find- Annual amortization(I).

Q: 4. The following cash flows are given below, which one is higher in value Fl or F2? 21% Year Year

A: Hi! Thank you for the question As per the honour code, We’ll answer the first question since the…

Q: You are paying a series of five constant-dollar (or real-dollar) uniform payments of $642.19…

A: Given: Uniform payment = $642.19 Inflation rate = 28.15%= 0.2815 Market interest rate =28.15%=…

Q: 2. Construct a cash flow diagram that represents the amount of money that will be accumulated in 15…

Q: the equivalent annual cash flow is nearest to:

A: Equivalent annual cash flow:

Q: How many years will be required for a sum of money to double, if the annual interest rate is 10%,…

A: Amount = A Principal amount = P Rate,r = 0.1

Q: Please do not SOLVE using EXCEL. Solve it using Manual Computation Determine the maximum future…

A: Given data, Yearly annuity = X Annuity period = 10 years Withdrawn after = 20 years Effective…

Q: 1. Write the objectives and procedure of value engineering. Assume a sum of $10,000 is invested for…

A: Objectives and procedure of value engineering: The main objective is to cut back project price,…

Q: . Determine the exact simple interest on P1,000 for the period from January December 31, 2012 at 12%…

A: P = 1000 t = 1year ( January to December 31 ) Rate of interest ,r = 12% = 0.12

Q: How much should be invested to have 7000 pesos after 190 days when invested at 9% simple interest?…

A: Given, Future Amount, A = 7000 pesos Time, T = 190/365 = 0.520548 years Rate, R = 9% Let 'P' be the…

Q: In an effort to pay off the loan quickly, a borrower made four payments in years 1 through 4, with…

Q: If money is worth 5% compounded quarterly, find the equated time for paying a loan of P 150,000 due…

Q: Compute the unknown value of x

Q: A company plans to set aside $50,000 per year beginning 1 year from now for replacing equipment 6…

A: The given data is shown below: Amount=$50,000Time=6 yearsRate of interest=10%

Q: The tag price of a certain commodity is payable in 100 days but if paid in 40days there will be a 2%…

A: Let the price of the comodity is X. Discount = 0.02X Amount to be paid in 40 days = X-0.02X = 0.98X…

Q: you borrow $80,000 to build a house. The interest rate on your loan is 1% per month and you will…

A: Given amount borrowed ,P = 80000 Interest rate,i = 1% per month = 0.01 per month Number of monthly…

Q: what is the value of K on the left-hand cash-flow diagram that is equivalent to the right-hand…

Q: Some time ago, you put £500 into a bank account for a "rainy day." Since then, the bank has been…

A: Using the formula: FV=PV[(1+i)n-(1/i)] where. FV=708.31 PV=500 i=0.01

Q: .A man is required to pay 57500 at the end of 15 days or 60000 at the end of 60 days. Determine the…

Q: An item presently costs P 2,000. If inflation is at the rate of 8% per year, what will be the cost…

Q: For the following cash flow at interest rate equal to 15%. The Present equivalent is equal to: End…

Q: Develop your concept that what will be the effect of inflation on money if it is not invested. Also…

A: As the demand of goods and services increases inflation occurs. As the demand of certain commodity…

Q: The amount of 10000 is borrowed at 30% per annum simple interest, how much will be due at the end of…

Q: What is the nominal interest rate if the interest rate of 25% is compounded continuously?

Q: 1. An investment of ₱ 8250.50 increases by ₱ 10,200.50, if invested at 7% compounded quarterly. Find…

A: Given data:A=P10200.50P=P8250.50r=7%=0.07

Q: How much money you need to put aside for the next five years to have $2000 for the down payment on…

Q: b) The time it would take for a given sum of money to double at 4% per year us) simple interest is…

A: Simple Interest , I = (PTR)/100 Time taken to double the principal amount is 25 years.

Q: 17. In amortization, accounting technique is used to lower the book value of a loan or an intangible…

A: Answer : option (a) periodically is correct. More about amortization is given in next step.

Question

4. Use the cash flow diagranm below to calculate the amount of money in year
that is equivalent to all the cash flows shown, if the interest rate is 12%
5.
per year.
2 3
4
6 7 8 9 10 11 12 13 Year
$1000
$2000

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Solution:-

VIEW

Step 2 Solution:-

VIEW

Step 3 Answer:-

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

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, civil-engineering and related others by exploring similar questions and additional content below.

Similar questions

At the birth of a girl, what amount should her mother invest in order to provide the daughter with ₱25,000 at the age of 21 years if the money earns 4 and 3/8 % compounded quarterly?a. ₱ 685.23 b. ₱ 10,025.32 c. ₱ 2,801.57 d. ₱ 8,250.50
Using Excel, create a table that can be used to look up monthly paymentson a car loan for a period of five years. The monthly payments are calculated from
You invested $18517 for 10 years at 4.92% per annum. How much more would you receive at the end of the period if the money invested is compounded monthly rather than compounded annually? a. 856 b. 322 c. 3574 d. 1759 e. 1011
If $197 is deposited in a savings account at the beginning of each year for 12 years and the account draws interest at 7% per year, compounded annually, the value of the account at the end of 12 years will be most nearly. Express your answer in whole number. Correct Answer: 3,771 ± 1
Topic : Investment Problem Suppose a family is depositing money into a bank account continuously, and the account earns interest of 4% annually (compounded continuously). The family began their first year with $23, 000 in the account. Assuming they don't make any withdrawals, how much money is in the account after 4 years? Ans. =26,990.75
The demand function for a product is modeled by p(x) = 50e^-0.0000125x where p is the price per unit in dollars and x is the number of units. What price will yield a maximum revenue? (Hint: Revenue= (Price) x (No. of Units))
solve this given problem using EXCEL with 7 decimal places
21 Determine the interest rate in % compounded annually if the compound amount factor is 1.569 for a period of 6 years. Express your answer in 3 decimal places.
Assume that you and your best friend each have $1000 to invest. You invest your money in a fund that pays 10% per year compound interest. Your friend invests her money at a bank that pays 10% per year simple interest. At the end of 1 year, what is the difference in the total amount of money for each of you ?
31. A bank pays interest at the rate of 6% per year, compounded monthly. If a person deposits $2500 in a savings account at the bank, how much money will accumulate by the end of 2 years?
Calculate the difference of the future amount of annuity due and ordinary annuity. Given that the periodic payment is P 12 500 with interest rate of 12 % compounded annually for 20 years. (Engineering Economy)