6.A man invests P10,000 now for the college education of his 2-year oldson. If the fund earns 14% effective, how much will the son get eachyear starting from his 18th to 22nd birthday?7.Determine the present worth and the accumulated amount of anannuity consisting of 6 payments P120,000 each, the payment are madeat the beginning of each year. Money is worth i5% compoundedannually.8.Calculate the present value on January 1, 20X0 of a perpetuity payingS1,000 at the end of each month starting from January 20XÒ. Themonthly discount rate is 0.8%.9. Maintenance cost for a new piece of manufacturing equipment isexpected to be $5,000 in the first year and increase $250 per year forevery year thereafter. If the cost of funds is 10%, what is the presentworth cost of maintenance for the next 5 years?10. Determine the present worth and the accumulated amount of anannuity consisting of 6 payments P120,000 each, theat the beginning of each year. Money is worth 15% compoundedannually.payment are made

6. Given: Amount invested=P 10000 Effective interest rate=14% To find: Amount which son would get…

Answered: 6.A man invests P10,000 now for the…

6.A man invests P10,000 now for the college education of his 2-year old son. If the fund earns 14% effective, how much will the son get each year starting from his 18th to 22nd birthday?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

6.A man invests P10,000 now for the college education of his 2-year old
son. If the fund earns 14% effective, how much will the son get each
year starting from his 18th to 22nd birthday?
7.Determine the present worth and the accumulated amount of an
annuity consisting of 6 payments P120,000 each, the payment are made
at the beginning of each year. Money is worth i5% compounded
annually.
8.Calculate the present value on January 1, 20X0 of a perpetuity paying
S1,000 at the end of each month starting from January 20XÒ. The
monthly discount rate is 0.8%.
9. Maintenance cost for a new piece of manufacturing equipment is
expected to be $5,000 in the first year and increase $250 per year for
every year thereafter. If the cost of funds is 10%, what is the present
worth cost of maintenance for the next 5 years?
10. Determine the present worth and the accumulated amount of an
annuity consisting of 6 payments P120,000 each, the
at the beginning of each year. Money is worth 15% compounded
annually.
payment are made

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