ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN: 9780190931919

Author: NEWNAN

Publisher: Oxford University Press

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You have borrowed $20,000 at an interest rate at 10% compounded annually. Equal payments will be made over a three-year period with each payment made at the end of the corresponding year. What is the amount of the annual payment? What is the interest payment for the second year?

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You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be made over a four-year period, with each payment made at the end of the corresponding year. What is the amount of the annual payment? What is the interest payment for the second year?

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You have borrowed $50,000 at an interest rate of 12%. Equal payments will be made over a three-year period. (The first payment will be made at the end of the first year.) What will the annual payment be, and what will the interest payment be for the second year?

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how much did you deposit at the end of each month in an IRA that pays 7% compounded monthly to earn $70,000 per year from interest alone, while leaving the principal untouched, to be withdrawn at the end of each year after you retire in 30 years?

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Consider the cash flow series given in the accompanying table. What value of C makes the deposit series equivalent to the withdrawal series at an interest rate of 6% compounded annually?

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You borrowed $22,000 to buy a new car from a bank at an interest rate of 9% compounded monthly. This loan will be repaid in 60 equal monthly installments over five years. Immediately after the 24th payment, you desire to pay the remainder of the loan in a single payment. Compute this lump-sum amount.

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A businessman borrowed P 200,000 and agrees to pay P 47,720 annually for x years at the rate of 6% compounded continuously. Find the value of x.

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

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You are buying a home for $500,000. If you make a down payment of $80,000and take out a mortgage on the rest at 10% compounded monthly, what will be your monthly payment if the mortgage is to be paid off in 12 years?

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Simon is planning to retire in 20 years. He wishes to deposit a regular amount
every six months until he retires, so that, beginning one year following his retirement, he will receive
annual payments of $80, 000 for the next 10 years. How much must he deposit if the interest rate is
8% compounded quarterly?

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Find the present value of a $50,000 annuity payable each three months for ten years but deferred for five years. Money is worth 12% compounded quarterly.

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What value of A makes the two annual cash flows shown in the following diagram equivalent at 12% interest compounded annually?

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find the present value of $175 perpetuity if the interest rate is 6 percent compounded quarterly. payments are at the beginning of the period.

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