An employee at Dragon Steel Corporation borrows $10,000 on May 1, 2020 and must repay a total of $10,700 exactly 1 year later. Determine the interest amount and the interest rate paid. Answer: I = $700 ; r = 7% per year
Q: Dr. Sheldon Lee Cooper plans to purchase an equipment for his small Physics display museum amounting…
A: Equivalent Uniform Annual Worth or Value or EUAW is calculated as: EUAC for asset initial cost = P…
Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is…
A: Future worth is used to determine the value of an asset in the future.
Q: Civil engineering consulting firms that provide services to outlying communities are vulnerable to a…
A: In economics and finance, present value, also known as present discounted value, is the value of an…
Q: If you borrow $24,000 now at an interest rate of 10% per year and promise to repay the loan with…
A: Given, Borrowing amount = $24,000 Interest rate i = 10% Payment amount = $3695 As per formula…
Q: Are all the cash flows estimated in actual dollars?
A: The cash flows are the returns obtained from the investment in the economy. The investments are very…
Q: The production of polyamide from raw materials of plant origin, such as castor oil, requires 20%…
A: Given Amount borrowed, P =$6 million, Rate of interest = 10%, Time, N=10 years Therefore, Annual…
Q: Detrich Products is planning to upgrade an aging manufacturing operation 5 years from now at a cost…
A: The cost at the fourth year (C) is $100,000. Interest rate (i) is 10%. Time period (n) is 4 years.…
Q: A rotary engine is the essence of a vertical takeoff and landing (VTOL) personal aircraft known as…
A:
Q: Mr.Rudi is a manager in an automation company. As part of his future planning, Mr.Rudi plans to…
A: In the mentioned question we have been ask about the time value of money as they have set a plan of…
Q: A granite company is planning to buy a fully automated granite cutting machine. If it is purchased…
A: The cost of the machine when purchased under down payment = $1600000 In the machine purchased on the…
Q: A $10,000 loan amortized over 5 years at an interest rate of 10% per year requires payments of $2638…
A: Borrowing amount (B) is $10,000. Time period (n) is 5. Interest rate (i) is 10%. Annual payment (A)…
Q: Automobiles of the future will most likely be manufactured largely with carbon fibers made from…
A: The time period can be denoted as ‘n’, and interest rate can be denoted as ‘i’.
Q: Yvonne’s father was a true believer in “giving back.” He endowed a program 35 years ago to help…
A: Perpetual income = $10,000 Interest rate = 10%
Q: Harley worked for many years to save enough money to start his own residential landscape design…
A: The external rate of return is the rate of return on a project where any excess cash from a project…
Q: The officers and Board of Directors of the Philippine Institute of Civil Engineers desire to award a…
A: 1 sep 2007 - Initial inflow = 18000 Interest income =1440 (18000*8% =…
Q: Loadstar Sensors is a company that makes load/ force sensors based on capacitive sensing technology.…
A: Present value can be calculated as follows:
Q: Vision Technologies, Inc. is a small company that uses ultra-wideband technology to develop devices…
A: Engineering economy symbols involved are : A : series of equal payments that is made at the end of…
Q: Darnell Enterprises constructed an addition to its building at a cost of $70,000. Extra annual…
A: Net cash flow can be calculated as follows:
Q: It cost P66,327 at the end of each year to maintain a section of Kennon road in Baguio City. If…
A: The value of money refers to the number of goods and services one can buy using it. It is calculated…
Q: Videotech specializes in online security software development. It wants to have $65 million…
A: a.) Interest rate and the number of time year can be calculated as follows: Since the interest rate…
Q: A manufacturer of industrial grade gas handling equipment wants to have Php500,000 in an equipment…
A: Below is the given values: Future value = 500000 Number of years for deposits = 11 years Interest…
Q: ng F at the end of the 32-year period), is
A: *Answer: . In this case the number of time period to be used is asked. It would be equal to 32 × 4…
Q: The officers and Board of Directors of the Philippine Institute of Civil Engineers desire to award a…
A: a. The cash flow diagram for the given details is showing below. Initially, they deposited $18,000…
Q: The optical products division is planning a $5 million building expansion for manufacturing its…
A: The present value of an annuity is the current worth of a cash flow series at a certain rate of…
Q: ) Cash Flow Diagram b) manual solution Company E is considering the purchase of a building it…
A: Given the lease amount = $30000 per year Sell price of building = $160000 Interest rate = 11%
Q: At an interest rate of 10% per year, the equivalent amount of $10,000 one year ago :is closest to .a…
A: Principal = $10,000 Time = 1 Year Interest Rate = 10% Simple Interest = P*R*T/100 = (10,000)(0.1)(1)…
Q: An Indium-Gallium-Arsenide-Nitrogen alloy developed at Sandia National Laboratory is said to have…
A: extra investment = $950,000 extra revenues = $450,000
Q: McCarthy Construction is trying to bring the company-funded portion of its employee retirement fund…
A: The deposit (D) is $500,000 in each of the last 5 years. Time period 1 (n1) is 4 years. Deposit…
Q: A wise mechanical engineering graduate began saving money for early retirement by depositing $1500…
A: Given Monthly deposit amount = $1500 rate of interest = 6% per year compounded semiannually. We…
Q: The National Institute on Drug Abuse has spent $15 million on clinical trials to find out whether…
A: The given information: Interest rate =8% Time period = 5 Gradient = 15%
Q: A broadband service company borrowed $2 million for new equipment and repaid the loan in amounts of…
A: Amount borrowed = $2,000,000 Amount repaid in year 1 and 2 = $200,000 Lump sum amount in year 3 =…
Q: The officers and Board of Directors of the Philippine Institute of Civil Engineers desire to award a…
A: 1 sep 2007 - Initial inflow = 18000 Interest income =1440…
Q: ABC Corporation was able to issue 20-year P10,000,000-face value bonds with interest of 8% per…
A: The effective annual interest rate is the real interest rate on credit since it considers the…
Q: A father wants to set aside money for his 5-year old son's future college education. Money can be…
A: P80,000 on 18th, 19th, 20th, and 21st birthdays. So, first, we will find the present value (value in…
Q: What is the internal rate of return on a $3,000 loan to be repaid as $3,500 two years from now
A: Given information: Present value (P): $3,000 Future value (F): $3,500 Time period (t): 2 To find:…
Q: Lysol specializes in odor control made deposits of PhP 10,000 at the end of year 2, PhP 25,000 at…
A: FV = PV*(1+r/2)2*n Where, FV = Future value PV = Present value r = rate of interest n = time period
Q: Life Oil Sdn Bhd (LOSB) is a small oil palm plantation company, it was incorporated in year 2010 and…
A: Badges of Trade is the activity that helps in deciding whether the activity is of Capital or Revenue…
Q: The heat loss through the exterior walls of a certain manufacturing plant is estimated to cost…
A: Given that; First cost= $401,000 which can reduce heat loss by 80% Cost at EOY 1=$29000 The cost of…
Q: CDO City started a Solid Waste Management initiative in partnership with Tetra Pak Philippines and…
A: In the mentioned question we have been asked about the profits which are going to be earned when…
Q: A bond issue of P200,000 in 10-year bonds, paying 16% nominal interest in semiannual payments, must…
A: (Q) A bond issue of P200,000 in 10-year bonds, paying 16% nominal interest in semiannual payments,…
Q: How much must you deposit each year into your retirement account starting now and continuing through…
A: The perpetual equivalent withdrawal (AW) is $80,000, interest rate (i) is 10 percent, time period…
Q: The highway department expects the cost of maintenance of a piece of heavy construction equipment to…
A: Cash flow refers to the inflow and outflow of cash in a project or a business. The present worth of…
Q: What do you mean by internal rate of return (IRR)? Find the IRR of an investment having initial cash…
A: Rate of return: It is the profit on an investment.
Q: A small minority firm TheGlobalTrans invested $100,000 for an intersection signal innovation…
A: For the calculation for bimonthly income, we need to divide the rate of interest by 6 and multiply…
Q: A loan of Php 10,000 at 10% simple interest per year. The loan is to be repaid by uniform amounts…
A: Given loan = 10,000
Q: A wise mechanical engineering graduate began saving money for early retirement by depositing $1200…
A: An investment's anticipated value (EV) is a forecasted average future value. Investors use EBITDA to…
Q: The cash flow associated with a strip mining operation is expected to be P2,000,000 in year 1,…
A: Formula: AT…
Q: An obligation of Php 30,000 is to be repaired in uniform annual amounts each of which include…
A: * SOLUTION :-
Q: The officers and Board of Directors of the Philippine Institute of Civil Engineers desire to award a…
A: The pending amount for each year can be calculated by using the following formula..
Q: The maintenance of a machine in a manufacturing plant currently costs a company $8,000 every year…
A: We are going to use Present value approach to answer this question.
Step by step
Solved in 2 steps
- Mr. David Smart just sold 100 shares of Nestlé, a Swiss firm, for SF5,080 per share. The shares were bought for SF4,600 per share a year ago. The exchange rate is SF1.60 per U.S. dollar now and was SF1.78 per dollar a year ago. Mr. Smart received SF120 as a cash dividend per share immediately before the share was sold. Compute the rate of return on this investment in terms of U.S. dollars and show your detailed calculations.What is the future value of P10,000 per year for 10 years invested at 10%? a. P159,374 b.P138,824 c. P170,000 d. P189,374Your friend withdrew $630,315 from an account into which she had invested $350,000. If the account paid interest at 4% per year, she kept her money in the account for how many years? (a) 1.8 years (b) 6.5 years (c) 12.5 years (d) 15 years
- How much money should be deposited annually in a bank account for five years if you wish to withdraw $4,000 each year for three years, beginning five years after the last deposit? The interest rate is 5% per year. The annual deposit amount should equal _____Trial and error is the only way to compute the internal rate of return (IRR) when interest is calculated over five or more periods Select one: True FalseA finance company advertises two investment plans. In plan 1,the company pays $12,000 after 15 years for every $. 1,000 invested now.In plan 2, for every $ 1,000 invested, the company pays $ 4,000 at the endof the 10th year and $ 4,000 at the end of 15th year. Select the best investmentplan from the investor’s point of view at i = 12%, compounded annually.
- Please no written by hand solution Assume that 25 years ago your dad invested $240,000, plus $31,000 in years 2 through 5, and $45,000 per year from year 6 on. Determine the annual retirement amount that he can withdraw forever starting next year (year 26), if the $45,000 annuity stopped at year 25. The interest rate being 12% per year. The annual retirement amount is determined to be $solve for IRR: (P/A, IRR, 20) = -1.062A company will deposit R$800 at the end of each semester, for 2 years, in a financial institution that pays interest of 24% p.a. capitalized semiannually. What will be the accumulated amount? The amount will be R$? R$ is BRL (monetary unit of Brazil)
- Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The in terest rate is 10% per year. a. $120,573 b. $220,573 c. $520,573 d. $420,573 e. $320,573The 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?Your friend borrows P10,000 on May 1 and must repay a total of P10,700exactly 1 year later. Determine the interest amount and the interest ratepaid.