EBK BASICS OF ENGINEERING ECONOMY
EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 8220102797123
Author: Blank
Publisher: YUZU
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Chapter 1, Problem 71APQ
To determine

Calculate the interest rate.

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At a compound interest rate of 10% per year, the amount that P10,000 one year ago is equivalent to now is closest to:   A. P 8,264 B. P 9,091 C. P 11,000 D. P 12,100
Soil Mediators, Inc., plans to finance a site reclamation project that will require a 4-year cleanup period. If the company borrows $4.5 million now and wants to earn 16% per year compounded semiannually on its investment, how much will the company have to receive in a lump sum payment when the project is over?
Hughes Cable Systems plans to offer its employees a salary enhancement package that has revenue sharing as its main component. Specifically, the company will set aside 1% of total sales for year-end bonuses for all its employees. The sales are expected to be $5 million the first year, $5.5 million the second year, and amounts increasing by 10% each year for the next 5 years. At an interest rate of 8% per year, what is the equivalent annual worth in years 1 through 5 of the bonus package?

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EBK BASICS OF ENGINEERING ECONOMY

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