ENGINEERING ECONOMY W/CONNECT(LL)
ENGINEERING ECONOMY W/CONNECT(LL)
8th Edition
ISBN: 9781307168761
Author: Blank
Publisher: MCG/CREATE
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Chapter 2, Problem 40P
To determine

Calculate the first deposit.

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A company that manufactures purgable hydrogen sulfide monitors is planning to make deposits such that each one is 5% smaller than the preceding one. What must be the deposit at the end of year 1 if the deposits will extend through year 10 and the fourth deposit is $1250? Use an interest rate of 10% per year.
A manufacturer of industrial grade gas handling equipment wants to have $500,000 in an equipment replacement contingency fund 10 years from now. If the company plans to deposit a uniform amount of money each year beginning now and continuing through year 10 (total of 11 deposits), what must be the size of each deposit? Assume the account grows at a rate of 10% per year.
For the cash flows shown in the diagram, determine the future worth in year 8 at an interest rate of 10% per year.

Chapter 2 Solutions

ENGINEERING ECONOMY W/CONNECT(LL)

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