How do I answer this? (3) (A) Find a simplified explicit form (in terms of s and t) for the amount of interest earned betweentimes and time t, which is I = A(t) - A(s), where s < t, ifa. In = n for some positive integer n.=b. In = 2" for some positive integer n. Hint: The geometric sum of k terms is Eo ar' =for a constant ratio r # 1.Total interest is the sum of the periodic interests, Is+1, Is+2,..., It.h+ +1₂Is+1 Is+2ItA(s) A(x+1) A(x+2)SS+1 s +2...A(-1) 4(0)1-1 t

Given, I=A(t)-A(s)where s<tWe need to find an explicit form for the amount of interest earned…

(A) Find a simplified explicit form (in terms of s and t) for the amount of interest earned between times and time t, which is I = A(t)- A(s), where s < t, if a. In = n for some positive integer n. = a¹=²²² b. In = 2" for some positive integer n. Hint: The geometric sum of k terms is Ear² = for a constant ratio r # 1. Total interest is the sum of the periodic interests, Is+1. Is+2,..., It.

(A) Find a simplified explicit form (in terms of s and t) for the amount of interest earned between times and time t, which is I = A(t)- A(s), where s < t, if a. In = n for some positive integer n. = a¹=²²² b. In = 2" for some positive integer n. Hint: The geometric sum of k terms is Ear² = for a constant ratio r # 1. Total interest is the sum of the periodic interests, Is+1. Is+2,..., It.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

State University tuition and fees can be paid using one of two plans. Early-bird: Pay total amount due one year in advance and get a 10% discount. On-time: Pay total amount due when classes start. If the cost of tuition and fees is $20,000 per year, (a) how much is paid in the early-bird plan, and (b) at an interest rate of 6% per year, what is the equivalent amount of the savings compared to paying when classes start, that is, 1 year later than the early-bird plan?
U.S. Census Bureau statistics show that the annual earnings for persons with a high school diploma are $35, 220 versus $57, 925 for someone with a bachelor’s degree. If the cost of attending college is assumed to be $35, 000 per year for 4 years and the forgone earnings during those years are assumed to be $35, 220 per year, what rate of return does earning a bachelor’s degree represent? Use a 25-year study period. In your analysis, you are expected to: (i) Use Excel to display the cash flow; (ii) Draw a Cash Flow Diagram; (iii) Use Excel to compute the internal rate of return of the CFD. (Hint: The investment in years 1 through 4 is the cost of college plus the foregone earnings, and the income in years 5 through 25 is the difference in income between a high school diploma and a bachelor’s degree.) Use excel
The maintenance cost for furnaces will be $100,000 per year for 2 years, then changed to $120,000 per year for 2 years, and $140,000 for the last year. If the interest rate will be 8% per year for the first 3 years and then increased to 10% in years 4 and 5. What is the equivalent present worth of the maintenance cost? Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Are all the cash flows estimated in actual dollars?
If APC is constant, C and Yshould also be constant. True or False
What is the amount of capital that earns simple interest: a)$1,500 at 18% per year in 10 months?b)$8,500 at 22% per year in 3 years and 4 months?
A businessman needs P50,000 for his operations. One financial institution is willing to lend him the money for one year at 12.5% discount rate. Another lender is charging 14% with principal and interest payable at the end of one year. A third financier is willing to lend him P50,000 payable in 12 equal minthly installments of P4,600. Which offer is the best for him? Validate your answer.(kindly give the given, complete and detailed solution. Thank you)
A to Z Mortgages made a home equity loan to your friend. For a 4-year loan of $10,000 at 10% per year, what annual payment must he make to pay off the entire loan in 4 years if interest is charged on (a) the original principal amount of $10,000, and (b) the unrecovered balance? (c) What is the difference in the annual payments between the two bases for interest? Which method requires more money to repay the loan?
Yvonne’s father was a true believer in “giving back.” He endowed a program 35 years ago to help students receive degrees when they are short on funds. If Yvonne wants to start her own scholarship fund that generates $10,000 annually starting next year, what is the amount she must contribute if earnings remain at 10% per year? The amount she must contribute if earnings remain at 10% per year is $X
A systems engineer who invested wisely can retire now because she has $2,000,000 in her self-directed retirement account. Determine how many years she can withdraw (a) $100,000 per year, or (b) $150,000 per year (beginning 1 year from now) provided her account earns at a rate of 5% per year. (c) Explain why the increased annual withdrawal from $100,000 to $150,000 per year is important.
Use economic equivalence to determine the amount of money or value of i that makes the following statements correct. (a) $5000 today is equivalent to $4275 exactly 1 year ago at i = ___% per year. (b) A car that costs $28,000 today will cost $____ a year from now at i = 4% per year. (c) At i = 4% per year, a car that costs $28,000 now, would have cost $____ one year ago. (d) Last year, Jackson borrowed $20,000 to buy a preowned boat. He repaid the principal of the loan plus $2750 interest after only 1 year. This year, his brother Henri borrowed $15,000 to buy a car and expects to pay it off in only 1 year plus interest of $2295. The rate that each brother paid for his loan is ___ % for Jackson and ___ % per year for Henri. (e) Last year, Sheila turned down a job that paid $75,000 per year. This year, she accepted one that pays $81,000 per year. The salaries are equivalent at i = ____% per year.
If Php 10,000 is deposited each year for 9 years, how much annuity can a person get annually from the bank every year for 8 years starting 1 year after the 9th deposit is made? Cost of money is 14%. Show chasflow diagram and complete solution.