Engineering Economics 1.Mr. Reyes borrowed from the bank an amount of P320,000 today to be paid after 5 years. Thiswas done at an interest rate of 5% compounded semi-annually. But, when the 5-year limit wasreached, Mr. Reyes does not have the capacity to pay. Therefore, the bank let Mr. Reyes renewthe borrowed amount plus the interest for another 5 years but under the condition of makingmonthly payments at the same interest rate. How much will Mr. Reyes pay monthly?2. An employee obtained a loan of P1,000,000 at the rate of 6% compounded annually in order tobuild a house. How much must he pay monthly to amortize the loan within a period of 10 years?

Mr. Reyes borrowed P320,000 today from the bank, which has to be paid after 5 years at an interest…

Answered: Mr. Reyes borrowed from the bank an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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On January 1, 2005, a person’s savings account was worth $200,000. Every month thereafter, this person makes a cash contribution of $676 to the account. If the fund was expected to be worth $400,000 on January 1, 2010, a) what monthly rate of interest was being earned on this fund? Answer is Blank 1 b) what is the nominal rate compounded monthly? Answer is Blank 2 c) What is the equivalent effective interest rate per year? Answer is Blank 3
Mary makes year-end deposit of $4500, the first year increasing the year’s deposits by 8% until the end of the 10th year. Ellen makes equal start-of-year deposits of $6000 each year for 10 years. If interest on both funds is 12% compounded annually, how much is difference of savings at the end of ten years? Mr. Reyes borrows P600,000 at 15% compounded annually, agreeing to repay the loan in 25 equal annual payments. How much of the original principal is still unpaid after he has made the 12th payment? please show complete solutions
10. A man borrowed P180,000 from a lending firm for 6 years at 9% compounded quarterly. At the end of 6 years, it renews the loan for the amount due plus P80,000 more for 6 years at 4 % compounded monthly. Determine the value of money at the end of the extended period? Show the Cash Flow Diagram. State your reference period in the solution as reflected in the diagram. Note: Use only two decimal places for the final answer and four decimal places for the solutions. Answer the problem with the given Format: Given, Required, Solution, Answer. Thank you!
Please answer using GUFSA method and please also use the formulas attached. 2. Gus purchased a laptop, and he would like to know the present value of his monthly payment of P3,000 when interest is 9% compounded monthly. How much is the present value of his payments at the end of 6 months? 3. Renato paid P200,000 as down payment for a car. The remaining amount is to be settled by paying P16,200 at the end of each month for 5 years. If interest is 10.5% compounded monthly what is the cash price of his car? 4. In order to save for her high school graduation, Mariglenn decided to save P200 at the end of each month. If the bank pays 0.250% compounded monthly how much will her money be at the end of 6 years? 5. The buyer of a car pays P169,000 cash and P12,000 every month for 5 years. If money is 10% Compounded monthly how much is the cash price of the car? 6. Fernan borrows money to buy a motorcycle. He will repay the loan by making monthly payments of P1,500 for 24 months at an…
2. A loan of $25,000 was repaid at the end of 9 months with $28,500. What annual rate of interest wascharged?3. If an investment company pays 16% compounded quarterly, how much should you deposit to have $5,000two years from now?
A bank offers to lend you $1,000 if you sign a note to pay K1,610.50 at the end of 5 years. What rate of interest is the bank charging you? b) Basket Wonders (BW) has a $1,000 Cash Deposit (CD) at the bank. The interest rate is 6% compounded quarterly for 1 year. What is the Effective Annual Interest Rate (EAR)? c) Prepare an amortization schedule for a K1, 000 loan to be paid in 3 equal installments at the end of each of the next 3 years. Interest is charged at a rate of 6% per annum.
A woman deposits $9000 at the end of each year for 10 years in an account paying 3% interest compounded annually. (a) Find the final amount she will have on deposit. (b) Her brother-in-law works in a bank that pays 2% compounded annually. If she deposits money in this bank instead of the other one, how much will she have in her account? (c) How much would she lose over 10 years by using her brother-in-law's bank?
SITUATION 3: Dana wants to accumulate money for their anniversary celebration with her husband in a yacht. At 5% rate of interest compounded monthly and at P9000 periodical payments, what will be the future worth: 6. if she will withdraw the accumulated money at the end of 7th month. 7. if she decides to withdraw the money 2 months after making 5 payments. 8. if she made 5 equal payments at the start of 5th period
NEED HELP ASAP FOR BOTH PROBLEM THANK YOU SO MUCH !Problem 1: An investment earns 20% compounded semiannually. After how many years will it triple?Problem 2: How much should Jane return at the end of 60 days if she loaned P10,000 from a friend at a simple interest of 10%?
An electronic device is available that will reduce this year’s labor cost by$16901.The equipment is expected to last for eight years. If labor cost increase at an average rate of 7% per year at interest rate is 12% compounded bimonthly. What is the maximum amount that we could justify spending for the device? Note: use interest rate with five decimal places.
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
Please do not handwirte on paper. Please type! Thanks Bob and Billy each invest $1,000,000 and $1200, respectively, in their own account with the same interest. a) Who will double their money first? b). If Bob wants to buy a $45,000 car. He is approved by her bank for $38,000 at 3.99% compounded monthly for 72 months. If He buys the car with a loan from her bank, how much does she actually pay for the car at the end of the loan? Excluded taxes and other fees

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