$1,500 $1,500 $500 $500 1 2 3 4 5 Years 2 3 4 Years

Q: State the present worth of the following future payments:(a) $8,000 five years from now at 8%…

A: a.) Present worth can be calculated as follows: Thus, the present equivalent worth of future…

Q: Find the amount at the end of two years and seven months if P1000 is invested at 8% compounded…

A: Interest is the amount paid in excess of the principal amount by the borrower to the lender. There…

Q: Determine the current amount of money that must be invested at 12% nominal interest, compounded…

A:

Q: How much will be at the said account three years after the last deposit? If you make six consecutive…

A: Given Information: Annual deposit, A = $2000 Interest rate = 10%

Q: Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8%…

A: Year Withdrawal/Annual deposits PV F @ 8% PV of withdrawal/deposits 0       1 600 0.9259 555.558…

Q: What will be the amount accumulated by each of the given present investments?(a) $6.000 in 12 years…

A:

Q: Consider the cash flow series given in the accompanying table. What value of C makes the deposit…

A: The money interest which represents the time value of money can be any given or declared rate of…

Q: What is the accumulated  value at the end of 10 years if P1k is invested at 12% compounded…

A: Interest can be defined as the amount paid in excess of the principal amount by the borrower to the…

Q: Jeremy makes six consecutive annual deposits of P2,000 each to a savings account that pays a…

A: Answer in step 2.

Q: The cash flow transactions shown in the cash flow diagram below are said to be equivalent to 9% of…

A: PW of known cash flows (TL) = 280 + 210 x P/F(9%, 1) + 140 x [P/F(9%, 2) + P/F(9%, 3)] + 210 x…

Q: A man borrowed P 1,000 which will be paid after 10 years at an interest rate of 12% compounded…

A: In order to solve the above problem we use the following formulas and logic:  1. We find the future…

Q: An investment of P2880 is made at the beginning of each month for 9 years and 4 months. How much…

A: We have given that the investment is made at the beginning of each month and A =₱2880 Length of…

Q: 200,000 was deposited at an interest rate of 24% compounded semi-annually. After how many years will…

A: Compound interest is the addition of interest which is being made to the principal sum of a deposit…

Q: You consider paying equal amounts of money into a bank account at regular intervals for 10 years. As…

A: a) we have $500 at the end of each month for 10 years i(12) = 12% So the monthly effective rate of…

Q: Money borrowed today is to be paid in 6 equal payments at the end of each quarter. If the interest…

A: answer was attached below

Q: If you obtain a loan of ₱1,000,000 at the rate of 12% compounded annually In order to build a house,…

A: Loan Amount = 1000000 Interest Rate= 12% N=10 Years Equal Payment Series =?

Q: Use Appendix C- End-of-period Compounding Interest Tables and formula (when necessary) to find the…

A: P = 10,000 N = 10 i = 6%

Q: Compare the interest earned on $8,000 for 15 years at 8% simple interest with the amount of interest…

A: A fixed percent of interest rate on the principal amount over a specific time period is referred to…

Q: What is the nominal rate of interest compounded continuously for 10 years if the compound amount…

A: Nominal interest is the interest before adjusting inflation.

Q: 1. What equal-annual-payment series is required in order to repay each given present amount? (a) Php…

A: The rate of interest that is actually generated on an investment or paid on a loan as a result of…

Q: Suppose that S1,000 is invested for six years at an interest rate of 10% per year, compounded…

A: Given information, Present value (P)=$1,000 Interest rate (r)= 10% compounded annually Time period…

Q: ind the equivalent effective interest rate of 6.05% when compounded continuously.   Write your…

A: Given  nominal interest rate i=6.05% compounded continuously. We have to calculate the equivalent…

Q: What single payment at the end of year 5 is equivalent to an equal annual series of payments of 600$…

A: Present value: It means the current value of the future sum of money for a specific rate of return.

Q: A large bank has increased its annual percentage rate (APR) on credit cards to 30%. This move was…

A: Meaning of Annual Percentage Rate (APR): The term annual percentage rate refers to that rate that…

Q: What is the difference between the sums of an annuity due and an ordinary annuity for the following…

A: In economics, present value refers to the current value of a future flow of cash flow. Future value…

Q: principal of P27,723 is placed in a saving account at 5.23% per annum compounded annually. How much…

A: Principal = P27,723 r = 5.23 n = 3

Q: At a certain interest rate compounded semiannually, P10,000 will amount to P30,000 after 15 years.…

A: Given the present value = P10000 Future value or the value after 15 years = P30000 First, we have to…

Q: Find the value of X such that the two cash flow transactions are economically equivalent at 12%…

A: Solution:-  PV = 800 + 800*[[(1+0.12)n-1)]/[0.12* (1+0.12)n]] =800 + 800[ 1.12^4-1]/[0.12*1.12^4]…

Q: Money borrowed today is to be paid in 5 equal payments at the end of each quarter. If the interest…

A: Given: The quarterly payment is = ₱ 21,293 The interest rate is = 3% compounded quarterly Money to…

Q: r. John Do borrowed P 1,000 and was able to sign a promissory note that he would pay P 2,032.79…

A: When the effects of compounding over time are taken into account, an effective annual interest rate…

Q: Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is…

A: Given that: i = 0.124 = 0.03n = 6A = 200000to find: P = ? P = A1+in-11+ini

Q: What equivalent annual equal payment series is necessary to repay a uniform gradient series of 9…

A:

Q: Suppose that the interest rate is 10% per year, compounded annually. What is the minimum amount of…

A: Compound interest formula: CI = P(1 + r / n)nt - P Where CI is compound interest  P is Principal,…

Q: At a certain interest rate compounded semi-annually, P5,000 will amount to P23500 after 10 years.…

A:

Q: Determine the initial amount owed at the beginning of the year if you have to pay P563.83 after 10…

A: Simple interest amount formulaA=P1+R×T100Where, A=AmountP=PrincipalR=Rate of interestand T=Time in…

Q: What is the amount $R that makes the two cash-flow diagrams below equivalent? The interest rate is…

A: Present value (PV) is the current worth of a cash flow at a given interest rate and time period. The…

Q: What interest rate compounded monthly is needed for an amount of P20,442 to increase to P34,904 in 2…

A: Given: Principal amount=P 20442 Future value=P 34904 Number of years=2

Q: Consider each of the equations below and draw the corresponding cash flow diagram. In each case, the…

A: Cash flow refers to the diagramatic representation that tells the net balance of cash moving into…

Q: An investment of P2658 is made at the beginning of each month for 4 years and 11 months. How much…

A: Investment Monthly = 2658 n = 4 Years and 11 months i.e. 12*4 + 11 = 59 months. r = 5%/12 =

Q: Suppose that the interest rate is 10% per year, compounded annually. What is the minimum amount of…

A: please find the needed answer below.

Q: What is the equal payment series for 10 years that is equivalent to a payment series of P12,000 at…

A: The present value (PV) of the future cash flow can be calculated by the following formula: i=8%…

Q: What payment ten years from now is equivalent to P1,000 six years from now if the interest rate in…

A: Let P is the unknown amount 10 year from now. A. Compounded Annually. P/(1+0.15)10 = 1000/(1+0.15)6…

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Given; Amount withdrawn in 4th period= $1900 Amount withdrawn in 8th period= $2500 Interest rate is…

Q: Indicate whether the given statements is true (T) or false (F): "Suppose that a lump sum of $1,000…

A: In continuous compounding, the money increases rapidly. In daily compounding, the money does not…

Q: What equal monthly payments will repay an original loan of $10,000 in six months at a rate of 6%…

A: P= $10000 n=6 r=6%

Q: find the equivalent rate of 6% compounded semi-anually in a compounded quarterly

A: To find the equivalent rate of 6% compounded semi-manually in the compounded quarterly, we used the…

Q: If money is worth 6% compounded annually, what payment 12years from now is equivalent to a payment…

A: Given information is: Interest rate: 6% compounded annually Value of payment after 9 years:…

Q: Find the amount at the end two years znd seven months of P 1M if invested at 9& compounded quarterly…

A: Investment amount (P) = 1,000,000 Annual interest rate (r) = 9% Compounding per year (t) = 4 Period…

Q: f you obtain a loan of ₱1M at the rate of 12% compounded quarterly in order to build a house, how…

A: Loan Amount = 1000000 Interest Rate= 12% N=10 Years Equal Payment Series =?

Cash Flow in Engineering Economics (Interest and Equivalence)

The cash flows of a firm are of two categories such as cash inflows and cash outflows. Cash inflow is the money or income entering a firm during a specific period whereas cash outflow is the money exiting a firm during a specific period in the form of the expenses incurred by the firm. In other words, we can say that cash flow is a series of expenses and credits that run over the project over the lifetime it existed whereas cash inflows are all the income and gains the company earns as a result of its operations.