(a)
Find the future value for
(a)
Answer to Problem 1P
The future value for
Explanation of Solution
Given data:
The present cost
The normal interest rate
The number of years
The number of compound period
Formula used:
Formula to calculate the future value is,
Here,
Calculation:
To calculate the future value:
Substitute
Therefore, the future value for
Conclusion:
Thus, the future value for
(b)
Find the future value for
(b)
Answer to Problem 1P
The future value for
Explanation of Solution
Given data:
The present cost
The normal interest rate
The number of years
The number of compound period
Formula used:
Formula to calculate the future value is,
Here,
Calculation:
To calculate the future value:
Substitute
Therefore, the future value for
Conclusion:
Thus, the future value for
(c)
Find the future value for
(c)
Answer to Problem 1P
The future value for
Explanation of Solution
Given data:
The present cost
The normal interest rate
The number of years
The number of compound periods per year
Formula used:
Formula to calculate the future value is,
Here,
Calculation:
To calculate the future value:
Substitute
Therefore, the future value for
Conclusion:
Thus, the future value for
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Chapter 20 Solutions
ENGINEERING FUNDAMENTALS
- 4. For a deposit of $ 1023 at 7.8% interest compounded continuously over 4 years, find the interest earned? 5. Irish is offered to invest in a business firm that will make her money earn 6% compounded bimonthly. How long will it take for her money to triple?arrow_forwardDetermine the effective interest rates corresponding to the nominal rates: (a) 7% compounding monthly, (b) 16.5% compounding monthly, (c) 6% compounding semiannually, (d) 9% compounding quarterly.arrow_forwardDeposits of 35 000.00, 48 000.00, and 25 000.00 were made in a savings account eight years, five years, and two years respectively. Determine the accumulate amount in the account today if a withdrawal of 55 000.00 was made four years ago. The applied interest rate is 12% compounded continuously.arrow_forward
- 3. On january 1, 2016, Diana opened an account with a P 50,000 deposit. On january 1, 2017, she withdraws P 25,000 and on january 1, 2019 she deposits P 75,000. If the account earns 7.5% interest, compounded yearly, and no further deposits or withdraws are made, what was the balance on january 1, 2021?arrow_forwardHow much must be deposited at 7.5% each year beginning on Jan.1, 2000, to accumulate ₱6,000 on the date of last deposit which is January 1, 2006? Find Aarrow_forwardQ2: Being a senior citizen you decide to invest $200,000 say for period 24 months, then describe what is the value you would expect to receive? Deposit rate (recurring deposit) available for various periods is given below.arrow_forward
- 1. An engineer purchased a bond for ₱1M. This pays an interest of ₱50,000.00 each year for 20 years, thereafter on the maturity, will return the original investment. If there is a 2% annual inflation during this period, what rate of return will the engineer receive after considering the effect of inflation?arrow_forwardMiw deposited P15, 000 each year for 10 years, how much annuity can Miw get annually from the bank every year for ten years starting one year after his last deposit. Rate of interest is 8%.arrow_forwardFind the compound interest at the end of the 10 years for 5000 at 8% compounded quarterlyarrow_forward
- Compute the initial value of the money if the barrower needs deposit the accumulated amount of P59,137 to the bank after 8 months and 24 days if the money has the interest rate of 19% per annum.arrow_forward17. Determine the present worth of the following cash flows based on an interest rate of 6.76% per year, compounded annually. Round off to two decimal places. End of Year 0 = Php 5323 End of Year 1 = Php 5906 End of Year 2 = Php 5906 End of Year 3 = Php 5697 End of Year 4 = Php 5030 End of Year 5 = Php 5548arrow_forwardThe effective annual interest rate is given to be 19.2%. What is the nominal ineterest rate per year if continuous compounding is being used?arrow_forward
- Engineering Fundamentals: An Introduction to Engi...Civil EngineeringISBN:9781305084766Author:Saeed MoaveniPublisher:Cengage Learning