If a nominal interest rate of 6% is compounded continuously, determine the unknown quantity in each of the following situations: a. What uniform EOY amount for 10 years is equivalent to $7,000 at EOY 10? b. What is the present equivalent value of $1,050 per year for 13 years? c. What is the future equivalent at the end of the fifth year of $236 payments made every six months during the five years? The first payment occurs six months from the present and the last occurs at the end of the fifth year. d. Find the equivalent lump-sum amount at EOY seven when P = $1,200. Click the icon to view the interest and annuity table for continuous compounding when i= 6% per year. a. The uniform EOY amount is $ .(Round to the nearest dollar.) b. The present equivalent value $1,050 per year for 13 years is $. (Round to the nearest dollar.) c. The future equivalent is $ (Round to the nearest dollar.) d. The equivalent lump-sum amount is (Round to the nearest dollar.)

If a nominal interest rate of 6% is compounded continuously, determine the unknown quantity in each of the following situations: a. What uniform EOY amount for 10 years is equivalent to $7,000 at EOY 10? b. What is the present equivalent value of $1,050 per year for 13 years? c. What is the future equivalent at the end of the fifth year of $236 payments made every six months during the five years? The first payment occurs six months from the present and the last occurs at the end of the fifth year. d. Find the equivalent lump-sum amount at EOY seven when P = $1,200. Click the icon to view the interest and annuity table for continuous compounding when i= 6% per year. a. The uniform EOY amount is $ .(Round to the nearest dollar.) b. The present equivalent value $1,050 per year for 13 years is $. (Round to the nearest dollar.) c. The future equivalent is $ (Round to the nearest dollar.) d. The equivalent lump-sum amount is (Round to the nearest dollar.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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