A company will receive a total of 10 payments (from year 0 through 9) where each payment per year is $12000 and the interest rate is 10% per year, what is (p)? Select one: a. $81,108 b. $91,108. c. $81,908.

A company will receive a total of 10 payments (from year 0 through 9) where each payment per year is $12000 and the interest rate is 10% per year, what is (p)? Select one: a. $81,108 b. $91,108. c. $81,908.

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: engineering econ John borrowed P50, 000.00 from the bank at 25% compounded semi-annually. What is…

A: Given the loan amount = P50000 Interest rate = 25%

Q: r=12% per year , compounded monthly, quarterly, seminaually, yearly , 2 years.Effective interest…

A: here we calculate the compound interest for following time interval , so calculation as follow-

Q: If a man borrowed money from his girlfriend with simple interest rate of 12% , determine the present…

A: (Q) If a man borrowed money from his girlfriend with simple interest rate of 12% , determine the…

Q: Darien invests $10,000 in an account that pays 3.2% interest per year, compounded semi-annually.…

A: Interest can be defined as the amount received in excess of the principal amount to the investor.…

Q: An engineer made a development in the production process which will save his company 10,000$ per…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: What annual interest rate paid for if: a) Payment of $5,000 per year for 6 years will repay an…

A: Hi Student, Thanks for posting the question. As per the guideline, we are providing answer for the…

Q: An engineer made a development in the production process which will save his company 10,000$ per…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: Cash flows cannot be added or subtracted when they occur at the same point in time. true or false?

A: Cash flow is the movement of money in and out of a company. Making cash means income and expenses -…

Q: Solar panels on your house will save you $2,000 per year in electricity expense. The panels will…

A: The time it takes to recoup the value of AN investment is mentioned because the payback amount.…

Q: $9000 is deposited into a savings account at the end of each year for 20 years. If the account pays=…

A: here we calculate how much value will the account have at the end of the 20 years period by…

Q: A project's annual revenue will be $50,000 the first year and will decrease by $1500 per year over…

A: Given a specific return rate, the present value of an investment is its future cash flow value…

Q: Q4. Find the value of the unknown quantity in the cash flow diagram shown below. Let =12% per year.…

A: Ans .) Above cash flow provided is an example of arithmetic gradient series as the cash flows are…

Q: Machine A will save $5000 per year for 6 years; machine B will save $6000 per year for 5 years. If…

A: Compound interest:- Interest on interest, or compound interest, is the addition of interest to the…

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

A: When the final amount is A, the annual interest rate is r, the initial balance is P, and the time in…

Q: the given cash flow diagram of the uniform gradient in a cash flow? Rs. 350,000 Rs. 325,000 Rs.…

A: Gradient is the change in the cash flow from one year to year. If the change is by the same amount…

Q: When can we use the Cash-Flow Approach?

A: Cash flow is the net transfer of cash and cash equivalents to and from a business. The ability of a…

Q: St. George's must invest in new piers to entice ships to enter the port. They estimate that it will…

A: Answer -

Q: Bruce deposited $100 into the bank account. The account is credited with interest at a nominal…

A: The correct answer is given in the second step.

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: Future Value = Present Value (1 + r / 100) ^ n FV = $1000 r = 4.7% / 4 = 1.175% (As it is compounded…

Q: Mr. and Mrs. Lacks want to collect money for college expenses in a bank at 9% interest rate…

A: We are going to use the Present Worth and Future Worth concepts to answer this question. To solve…

Q: Your company wants to set aside a fixed amount every year to a sinking fundto replace a piece of…

A: The details given indicate that the firm needs to make a future sum of $375,000 at the end of the…

Q: . A $3,000 face-value bond matures in three years and pays 8% per year payable semiannually (4% very…

A: GIVEN A $3000 face value bond matures in three years and pays 8% per year payable semiannually (4%…

Q: 2. A farmer must purchase a tractor using a loan of $20,000. The bank has offered the following…

A: Loan Amount = 20,000 r = 8% MARR = 15%

Q: QUESTION 13 For a given cash flow diagram, if the interest rate i=10% , and A=$600, the F value is…

A: Future Value: F=P(1+r)nF=4000(1+0.1)5F=4000(1.61)F=6,440 Future value with Annuity:…

Q: What would the return be for a $ 1000 face value coupon bond with a rate of 10% that is bought for…

A: Given information: Face value = $1000 Coupon rate = 10% Coupon payment = $1000 x 10% = $100 Purchase…

Q: How much should be put in an investment with a 10% effective annual rate today to have $10000 in…

A: The effective annual rate = 10% Future value of an investment = 10000 dollars Time period = 5 years

Q: For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear…

A: Given Future loan payment = 1,000,000 $ Time = 10 years Interest rate = 10 % Therefore Present worth…

Q: Even though the amounts and timing of the cash flows may differ, the appropriate interest rate makes…

A: True

Q: 1. An electric utility investment has a capital cost of $60 million, a term of 8 years, and an…

A: Under the Strata Property Act, strata corporations and sections must have contingency reserve funds…

Q: Nabhan has placed varying sums of money into an investment fund. Figure 1 shows the cash flow…

A: When interest is given quarterly, the effective rate of annual interest is used. Effective rate of…

Q: Engineering graduates earn $880,000 more than the average Liberal Arts BA holder in a career. Assume…

A: We have to find annual value (A) from the future value ($880,000).

Q: A deposit of $20,000 now at an interest rate of 10% per year will accumulate in 10 years to an…

A: Deposit = 20000 $ Interest rate = 10 % Time = 10 years

Q: How much would be in your account in 10 years after depositing $2000 now? The annual interest rate…

A: Answer -1 According to the question, we need to calculate future value. Present value (PV) = $2000…

Q: If $3000 invsted in a compound interest account for 4 years, amounts to $3612, what is the annual…

A: Given, P+I = A = 3612 P = 3000 n = time = 4 years Compound interest Rate = r = ??

Q: 3,500.00 for one year from a friend at an interest rate of ng a loan from a bank at a rate of 18%…

A: *Answer:

Q: Mrs. Jones plans to save $750 a month for the next 10 years, at 10% per year, compounded monthly.…

A: We are given, Interest rate = 10% = 0.1 Monthly payment = $750 Interest rate per month would be…

Q: Three years ago, Keith paid $150,000 for his 3 bedroom home. If the property has appreciated at 5%…

A: Given information: Keith purchase a 3 bedroom house at $150,000 The property has appreciated at 5%…

Q: a. How much must be placed each month into a retirement account earning 3% compounded monthly if…

A: a. Given, Future value in 30 years = $1,000,000 Calculating the monthly deposit into account using…

Q: Gabe purchases a $600 bond that has 6 remaining semi-annual 7% coupon payments for $510. What would…

A: Semi-Annual: is an adjective that describes one thing that's paid, reported, published, or otherwise…

Q: 200, 000.00 was deposited at an interest rate of 24% compounded semi-annually. After how many years…

A: Semi annually refers to half yearly. A period of 6 months is referred as semi annual. So the rate of…

Q: An environmental soil cleaning company deposits $2,000 quarterly in a fund that earns 8% compounded…

A: Given - Quarterly Deposit Amount = $2000 Rate of interest = 8% Rate of interest per quater = 2% =…

Q: 3. The optical products division is planning a $5 million building expansion for manufacturing its…

A: Given the initial investment = $5 million Interest rate = 6% So, semiannually interest rate = 6%/2…

Q: A money worth $4000 is borrowed for 75 days at 16% per annum simple interest.

A: GIVEN DATA A money worth $4000 is borrowed for 75 days at 16% per annum simple interest

Q: A one-year installment plan for an electronic gadget is paid P2,500 for the first month. The payment…

A: Given the first month installment = 2500 Per month increase in cost = 200 Interest = 15% or 15%/12 =…

Q: A highway company today hires maintenance services for one year from another company; both agree…

A: In this case you will have to calculate the each amount of payment with given interest rate and…

Q: r each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual…

A: The formula is used for calculating Present worth Here, A1 is $100,000 g is -5% n = 5year.

Question

A company will receive a total of 10
payments (from year 0 through 9) where
each payment per year is $12000 and the
interest rate is 10% per year, what is (p)?
Select one:
a. $81,108
b. $91,108.
c. $81,908.
d. None of these answers.

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

VIEW

Step 2

VIEW

Step by step

Solved in 2 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

A firm borrows P2000 for 6 years at 8% per year interest rate. At the end of 6 years, it renews the loan for the amount due plus P2000 more for 2 years at 8% per year. What is the lump sum due?
A business invests $5000 and initially plans to achieve annual revenue of $1100/yr with $200/yr expenses (starting at the end of ar 1) for ten years. No market value if used for ten years. 1.If at the end of the sixth year, instead, the investment is sold for $1000, calculate the PW, FW and AW for a BTCF MARR of 12%. Is the investment a good one if used this way? Why?
A business executive is offered a management job at Generous Electric Company, which offers him a 5-contractyear that calls for a salary of $62,000 per year, plus 600 shares of GE stock at the end of the 5 years. This executive is currently employed by Fearless Bus Company, which also has offered him a 5-year contract. It calls for a salary of $65,000, plus 100 shares of Fearless stock each year. The Fearless stock is currently worth $60 per share and pays an annual dividend of $2 per share. Assume end-of-year payments of salary and stock. Stock dividends begin one year after the stock is received. The executive believes that the value of the stock and the dividend will remain constant. If the executive considers 9% a suitable rate of return in this situation, what must the Generous Electric stock be worth per share to make the two offers equally attractive? Use the future worth analysis method in your comparison.
Define and provide an example for Intangible property
As part of your inheritance, you received a bond that will pay interest of $700 every 6 months for 15 years. If the coupon rate is 7% per year, the face value of the bond is (a) $10,000 (b) $20,000 (c) $30,000 (d) $40,000
ENGINEERING ECONOMICSIt costs P500,000 at the end of each year to maintain a section of Kennon Road in Baguio City. If money is worth10%, how much would it pay to spend immediately to reduce the annual cost to P100,000?a. List the given variablesb. Formula & Complete solution
A fresh graduate engineer decides to start a consulting firm by borrowing $130,000 at interest rate of 13% per year interest, using the formula: a) What is the loan payment each year to pay off the loan in 7 years?, b) Using the above calculation, draw the cash flow diagram Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
D,e and f part only plz
1) All engineering economy problems involve the element of time n and interest rate i Select one: True False 2) In practice, interest rates do not stay the same over time unless by contractual obligation. Select one: True False 3) When interest over a specific time unit is expressed as a percentage of the original amount (principal), the result is called rate of return. Select one: True False
The city council has approved the building of a new bridge over Running Water Creek. The bridge will cost $17,000 for initial construction and have an annual maintenance cost of $1,000. The council plans to withdraw money from the city’s Bridges and Highways account to open a special account to cover the initial construction and to fund a perpetuity to cover the maintenance costs forever. How much money must be withdrawn from the Bridges and Highways account if the city can expect to earn 5% on the special account? a. $1,000 b. $17,000 c. $18,000 d. $37,000.
The maximum amount an individual can contribute to her Registered Retirement Savings Plan (RRSP) for a year is set from time to time by the Regulations of the Income Tax Act. For the year 2020, the maximum contribution is the lesser of $27,230 or 18% of the individual’s “earned income” during 2019. What is the maximum RRSP amount that can be contributed in 2020 based on an income of $128,500 in 2019?
Net present value:a) is greater if cash receipts occur later rather than earlier.b) is greater if cash receipts occur earlier rather than later.c) is revenue minus fixed cost.d) is preferred over break-even analysis.e) is greater if $100 monthly payments are received in alump sum ($1,200) at the end of the year.