A Project Manager for a construction company deposited $125,000 every 3 months into an investment fund for two years. In addition to these quarterly deposits, she withdrew $40,000 on three occasions in Months 8, 10, and 18. How much does the Project Manager expect from the fund after the two-year period if she was quoted an interest rate of 10% per year compounded semi-annually. Assume that no inter-period interest is charged.

A Project Manager for a construction company deposited $125,000 every 3 months into an investment fund for two years. In addition to these quarterly deposits, she withdrew $40,000 on three occasions in Months 8, 10, and 18. How much does the Project Manager expect from the fund after the two-year period if she was quoted an interest rate of 10% per year compounded semi-annually. Assume that no inter-period interest is charged.

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

An individual deposits an annual bonus into asavings account that pays 5% interest compoundedannually. The size of the bonus increases by $6,000each year, and the initial bonus amount was $30,000.Determine how much will be in the account immediately after the fifth deposit
22 What is the Present Worth of S2,000 costs in year one, increasing by $500 per year for years 2 thru 6. The interest rate is 12% per year. (vou must showa cash flow diagram, factor-notation equations, and a solution)
A deposit is made at t=0 into an investment account. Annual withdrawals are taken out over over a 10-year period with each successive withdrawal $175 greater than the previous withdrawal and at the end of year 10 the account is depleted. The amount withdrawn at the end of year 1 was $1582. What was the initial investment amount? Use a TVOM intrest rate of 8% per year, compounded annually. (ANS=$15,161)
Apple Computer wants to have $2.1 billion available 5 years from now in order to finance initial production of a device that applies IOT technology for home use. The company expects to set aside uniformly increasing amounts of money each year to meet its goal, starting with $100 million at the end of year 1. Find present worth 1 through 5 andfind future worthat the end of year 5 using excel function. Howmuch will the constant increase, G, have to be each year at a rate of return of 18% per year? Try your skill by using the Goal Seek tool to find the required gradient. Start the evaluation with G = $50 million per year.
Engineer John places 10% of his salary each year into a high-technology stock fund for his retirement. If his salary this year (end of year 1) is $160,000 and he expects his salary to increase by 3% each year, what will be the future worth of his retirement fund after 15 years, provided it earns 7% per year?
nNEED HELP ASAP! THANK YOU!Calculate the present worth of a geometric gradient series with a cash flow of 60,000 pesos in year 1 and increases of 7% each year through year 9. The interest rate is 12% per year
(a) An interest rate of 6.8% per semiannual period compounded weekly is equivalent to what weekly interest rate? (b) Is the weekly rate a nominal or effective rate? Assume 26 weeks per 6 months.
engineering economy Volunteer Pharmaceuticals (VP) wants to set aside money in the R&D fund toseek supplemental drug applications of its two newly developed drugs. Instead ofputting away $450 million now, VP plans to set aside $A each year from year 1through 40. What should the value of A be if VP expects to earn 10% per yearfor the first 5 years and 3% per year for the remaining years?
Eng. Eco If P10,000 is deposited each year for 9 years, how much accumlated desposit will be at the end of 9th years. Cost of money is 14% compounded annually.
The pumping cost for delivering water from theOhio River to Wheeling Steel for cooling hotrolled steel was $1.8 million for the first 4years. An effective energy conservation programresulted in a reduced cost of $1.77 millionin year 5, $1.74 million in year 6, and amountsdecreasing by $30,000 each year through year10. What is the present worth of the pumpingcosts in year 0 at an interest rate of 12% peryear? 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.
A guy deposited P4,000, P4,500 and P5,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 0.07 per annum. What is the equivalent uniform deposit for the uniform gradient only?
A mother wants to set aside money for her 5-year old son's future college education. Money can be deposited in a bank account that pays 8.16 % per year, compounded annually. What equal deposits should be made by the mother on her son's 6th through 17th birthday, in order to provide $5906 on the son's 18th, 19th, 20th, and 21st birthday?