Assume that you have invested RM 5,000 in the food company. Calculate your investment value at the of year 10 if the investment received the following interest (i) (ii) 6. Simple interest of 10% per year Compound interest of 10% per year

Assume that you have invested RM 5,000 in the food company. Calculate your investment value at the of year 10 if the investment received the following interest (i) (ii) 6. Simple interest of 10% per year Compound interest of 10% per year

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: Determine the exact simple interest on P 5,000.00 for the period from June 15 2015 to November 28,…

A: There are two parts one is simple interest for years and simple interest for days . Assuming that…

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: A person buys a car for a down payment of 50,000 and a monthly payment of 35,000.00 for 9 years…

A: If the annual rate of interest is 8%, the monthly rate of interest is 8/12=23% So the present value…

Q: Emerson Processing borrowed $900,000 for in- stalling energy-efficient lighting and safety equipment…

A: here we can calculate the folowing terms as follow

Q: A cash flow sequence starts in year 1 at $4000 and decreases by $300 each year through year 9.…

A: a. The amount of cash flows that increases or decreases by a constant amount is called Gradient…

Q: An Australian based energy drink manufacturer plans to expand its international markets to the…

A: Given: First-year additional income (F1) =$48586 Uniform increase in income (G)=$4872 Time period…

Q: Marcus took out a loan in his senior year of college with an annual simple interest rate of 4% per…

A: In an economy, people interact to make various economic, financial and business deals with each…

Q: A cash flow sequence starts in year 1 at 4000 and decreases by 300 each year through year 9.…

A: Hi Student, thanks for posting the question. Since the sub part c is incomplete we are providing…

Q: The owner of Hickory Bar-B-Que plans to open a new restaurant in 4 years at a cost of $200,000. Find…

A: Look across the top of the sinking fund table for 3% and down side for 8 periods to find…

Q: Calculate the equivalent future cost in year 10 for the following series of disbursements at an…

A: The present value of cash flow from year 0 to 5 can be calculated as follows:

Q: Apple Computer wants to have $2.1 billion available 5 years from now in order to finance initial…

A: Firm expect (Goal) to have $2.1 billion five years from now. The first year cash flow is $100…

Q: Kelra's equivalent present water consumption in small laundry business is estimated to be P15,000.…

A: *Answer:

Q: How much money should you be willing to pay now for a guaranteed $600 per year for 9 years starting…

A: The interest rate, as a percentage of the sum loaned, borrowed or deposited, is the rate of money…

Q: What effective interest rate per year, compounded continuously, is equivalent to a nominal rate of…

A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…

Q: Determine the exact simple interest on Php 1,000,000 invested for the period from October 24, 1987…

A: It is 7 days from October 24th to October 31st. In 1987, there were 68 days in total. 30 days in…

Q: The interest rate is 15% per year, compounded annually.

A: Given cashflows for 5 years interest rate = 15 % Net present value = cashflow each year / (1 +…

Q: 4. Find the future worth in year 10 of an investment that starts at P8000 in year 1. The interest…

A: Present value PV of the investment = P8000 Rate of interest (r) = 10% time (n)= 10 years

Q: Hansus Enterprises is a start-up small business specializing in software systems for machinebased…

A: The company receives $50,000 in years 0,3, and 6. Schedule A’s payment is $19,500 per year from…

Q: The Pedernales Electric Cooperative estimates that the present worth now of income from an…

A: Here we calculate the gradient by using the given data , so the calculation of the following by…

Q: Use factors and a spreadsheet to determine the interest rate per period from the following equation:…

A: The NPV value in the first part is negative by using interest rate and another part is positive by…

Q: Environmental Designs, A/S produces and installs energy efficient window systems in commercial…

A: Ans. St = S0 (1 + g)t Where, St is sales revenue presently…

Q: A project is expected to generate a cash flow of $8000 in year 1, $2000 in year 2, and $5000 in year…

Q: Your grandmother deposited $10,000 in an investment account on the day you were born to help pay the…

A: The case indicates that the individual deposits an amount of $10,000 in an investment scheme and the…

Q: A company that manufactures general-purpose transducers invested $2 million 4 years ago in…

A: A firm invested (PV) $2,000,000 for 4 years ago. The value after 4 years (Future value) is…

Q: An energy company wants to have $ 3.1 billion available 6 years from now to finance the production…

A: We need to find the value of G

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: State the purpose for each of the following built-in spreadsheet functions:a. FV(i%,n,A,P)b.…

A: Part a) FV(i%,n,A,P) function in excel finds the future value F . The FV Function Excel formula is…

Q: What is the present value of P500,000 to be received 20 years from now, if the principal is invested…

A: P=A(1+R)nwhere P is present value A is future value R is interest rate n is time period

Q: A pharma company uses spectrophotometers to analyze the concentration of products. One of the…

A: Fixed costs include any number of expenses, including rental lease payments, salaries, insurance,…

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: Determine the exact simple interest on $5000 invested for the period from January 15,1996 to October…

A: Given informations: Principal amount = $5000 Interest rate = 18%

Q: A midcareer engineer hopes to have $2 million available for his use when he retires 20 years from…

A: The interest rate is 8 percent per year when compounded quarterly. Deposit is made uniform, which is…

Q: • The exact simple interest of P5000 invested from June 21, 1995 to December25, 1995 is P100. What…

A: Simple interest: It is calculated on the principal amount of a loan.

Q: Kelra's equivalent present water consumption in small laundry business is estimated to be P15.000.…

A: The growth rate is defined as the consumer price index of the current year to the consumer price…

Q: Globo-Chem Co. is expected to generate a free cash flow (FCF) of S8,385.00 million this year (FCF, =…

A: The weighted average cost of capital is the rate that a company is expected to pay on average to all…

Q: Your grandfather made a save account with the interest of 10% per year, to that account worth a

A: Grandfather made save account with interest rate is 10% per year and account worth a value of $100…

Q: The exact simple interest of P7,000 invested from April 28, 2002 to December 25, 2002 is P700. What…

A: Simple interest is the total amount that is to be paid for using the borrowed money.

Q: By filling carbon nanotubes with miniscule wires made of iron and iron carbide, incredibly thin…

A: The formula to be used here of present worth would be: P=A(1+i)n-1i(1+i)nWhere i is the annual…

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: If the VF Corporation deposits $20 million of its retained earnings in an aggressive stock ownership…

A: Deposit (D) is $20,000,000. Interest rate (i) is 18% per year compounded monthly. Compounded…

Q: How long does it take an investment to quadruple at 5% with m = 7 compoundings per year?

A: Compound interest formula: A=P(1+rn)nt Investment to quadruple: A = 4P4P = P…

Q: An entrepreneur wants to have P100,000 3 years from now. What amount should he invest now if it will…

A: Given A entrepreneur wants to have 100,000 in 3 years from now. Let principal amount = P . For two…

Q: .. If an engineer borrows $1,000 from the company credit union at 5% per year compound interest,…

A: Here we calculate the amount due after 3 year by using the given information , so the calculation…

Q: Alvin opens an account with a bank paying 3% interest per year to buy a house at the end of 10 years…

A: Annuities can be defined as payments made at equal intervals of time. Ordinary annuities makes the…

Q: What is the value at n=21 of a 21 year geometric gradient which increases at a uniform rate of 5%…

A: Given g = 5% A1= $2,263 Rate of interest i =8% n=21 We have to calculate the future value of this…

Q: A savings account earns interest at the rate of 6% per year, compounded continuously. How much money…

A: The information being given to us is:- Interest rate of savings account = 6% per year First…

Q: An individual wishes to deposit an amount of money now to have an accumulation of $500 at the end of…

A: Here, we calculate the given as follow;

Q: Determine the exact simple interest on P 12, 000 for the period from January 16 to November 26, 2004…

A: Simple interest could be fast and straightforward thanks to puzzle out what quantity cash you owe on…

Q: RM10,000 is invested for 4 years 9 months in a bank earning a simple interest rate of 10% per annum.…

A: From the question, we have information that- Principal amount(P)= RM 10,000Simple Interest Rate (R)=…

Question

6.
Assume that you have invested RM 5,000 in the food company.
Calculate your investment value at the of year 10 if the investment
received the following interest
(i)
(ii)
Simple interest of 10% per year
Compound interest of 10% per year

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

19 - What is the value of the compound interest rate applied to a capital of R$13,200.00, so that it becomes R$35,112.26, if the investment period is 7 months?
8. Engr. Budoy bought a bond having a face value of P 10,000 for P 9,700. The bond rate was 14% nominal and interest payments were made to him semi-annually for a total of 7 years. At the end of the seventh year, he sold the bond to a friend at a price that resulted a yield of 16% nominal on his investment. What was the selling price?
Please try to solve in 20 minute Your client plans to invest $2000 at the end of each year. The rate of return on the investment is 7.5% compounded annually. What will be the value of the investment at the end of 12 years?
Mr Chen wants to get a lumpsum of 3.5 million pesos when he retires at the end of 20 years. How much in pesos should he deposit every end of 3 months in a fund that gives an interest of 12% compounded quarterly to satisfy his desire?
Mr Chen wants to get a lumpsum of 3.5 million pesos when he retires at the end of 20 years. How much in pesos should he deposit every end of 3 months in a fund that gives an interest of 12% compounded quarterlyto satisfy his desire? thank you
A trader buys a $1600, 12% quarterly bond for $1800, the bond matures in 3 years and pays interest compounded quarterly, what is the rate of return on the bond compounded quarterly?
suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest per year, componded continously, part b: in part a,suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 25. The annuity will extend from teh EOY 26 to EOY 33, what is the value of this annuity if teh interest rate and componding frquency in part a do not change
Edison has ₱3,000.00 investment at 8% and ₱8,000.00 at 3% simple interest. Determine the additional sum that must be invested at 4% to give him an overall annual return of 6%. NOTE: The overall annual return is the sum of all interest over sum of all principal amount.
7. Find the PV of $1000due in 5 years if the discount rate is 10% per year. (Assume this is a single payment not an annuity).
The LMNT Company deposited P100 000 in a bank account on May 15 and withdrew a total of P115 000 exactly one year later. Compute: (a) the interest which the LMNT Company received from the P100 000 investment, and (b) the annual interest rate which the LMNT Company was paid.
Green and Gold Industries sells 3 products. The sales are expected to increase every year as shown over the next 5 years. For the rate of interest given, what is the FV of the total sales revenue? Product A Product B Product C Rate 1st years sales $200,000 $150,000 $50,000 6% Increases per yr 5% 10% $15,000 A. $2.7 Million B. $220,500 C. $2.3 Million D. $243,101
Kindly provide a CLEAR and COMPLETE solution.A man borrowed P75,000+15 on September 18, 1898, and promised to pay on May 17, 1904, at a simple interest of 12%. How much will be the total interest?