EBK CONTEMPORARY ENGINEERING ECONOMICS
6th Edition
ISBN: 8220101336736
Author: Park
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 32P
(a):
To determine
Calculate the capital recovery factor.
(b):
To determine
Calculate the present value factor.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Determine the value of the following factors by interpolation, and compare the results with those obtained from evaluating the A/P and P/A interest formulas:(a) The capital-recovery factor for 36 periods at 6.25% compound interest.(b)The equal-payment-series present-worth factor for 125 periods at 9.25%compound interest.
A debt of P 15,000 was paid for as follows:
P 4,000 at the end of 3 months,
P 5,000
at the end of 12 months,
P 3,000 at the end of 15 months, and
a final payment F at the
end of 21 months.
If the rate of interest was 18% compounded quarterly, find the final payment F.
You consider paying equal amounts of money into a bank account at regular intervals for 10 years. As a result of your research, you find out the following payment plans:a. To pay $500 at the end of each month for a period of 10 years with an interest rate 12% compounded monthly.b. To deposit $1500 at the end of every three months with an interest rate of 12% compounded continuously for 10 years.c. To deposit $1000 at the end of every two months with an interest rate 12% compounded quarterly for 10 years.For each of these payment plans, calculate the amount of money that will be accumulated in your account at the end of the 10th year (including the last payment). Which alternative would be more advantageous for you?
Chapter 3 Solutions
EBK CONTEMPORARY ENGINEERING ECONOMICS
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10P
Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - Prob. 31PCh. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39PCh. 3 - Prob. 40PCh. 3 - Prob. 41PCh. 3 - Prob. 42PCh. 3 - Prob. 43PCh. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49PCh. 3 - Prob. 50PCh. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - Prob. 53PCh. 3 - Prob. 54PCh. 3 - Prob. 55PCh. 3 - Prob. 56PCh. 3 - Prob. 57PCh. 3 - Prob. 58PCh. 3 - Prob. 59PCh. 3 - Prob. 60PCh. 3 - Prob. 61PCh. 3 - Prob. 62PCh. 3 - Prob. 63PCh. 3 - Prob. 64PCh. 3 - Prob. 65PCh. 3 - Prob. 66PCh. 3 - Prob. 67PCh. 3 - Prob. 68PCh. 3 - Prob. 69PCh. 3 - Prob. 70PCh. 3 - Prob. 71PCh. 3 - Prob. 72PCh. 3 - Prob. 1STCh. 3 - Prob. 2STCh. 3 - Prob. 3ST
Knowledge Booster
Similar questions
- Find the amount at the end of two years and seven months if P1000 is invested at 8% compounded quarterly using simple interest for anytime less than a year interest period.arrow_forwardFind the future value after 30 years if a one-time investment of $1,000 is made at a 10% yearly interest rate (compounded annually).arrow_forwardIf your goal was to have the largest amount of money in your bank account in two years, which of the following would you choose? (Assume that the beginning deposit and all interest earnings remain in the account for the full two years.) a beginning deposit of $1,010 earning, 3% per a beginning deposit of $950, earning 5% per year a beginning deposit of $930, earning 8% per year a beginning deposit of $1,000, earning 4% per yeararrow_forward
- Georgi Rostov deposits $15,000 in a savings account that pays 6% interest compounded monthly. Three years later, he deposits $14,000. Two years later after the $14,000 deposit, he makes another deposit in the amount of $12,500. Four years after the $12,500 deposit, half of the accumulated funds is transferred to a fund that pays 8% interest compounded quarterly. How much money will be in each account six years after the transfer?arrow_forwardYou obtained a loan of $25,000 to finance your home improvement project. Based on monthly compounding over 24 months, the end-of-the-month equal payment was figured to be $1200. What is the APR used for this loan?arrow_forwardWhat is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $23391 is made at the end of year 11, and subsequent withdrawals increase at the rate of 10% per year over the previous year’s, if the interest rate is 10%, compounded annually?arrow_forward
- Consider the following two cash flow series of payments: Series A is a geometric series increasing at a rate of 6.5% per year. The initial cash payment at the end of year 1 is $1,000. The payments occur annually for 5 years. Series B is a uniform series with payments of value X occurring annually at the end of years 1 through 5. You must make the payments in either Series A or Series B. Determine the value of X for which these two series are equivalent if your TVOM is i = 8.5 %. If your TVOM is 8%, would you be indifferent between these two series of payments? Enter the PW for each series to support this choice. PW, Series A: PW, Series B: If your TVOM is 5%, would you be indifferent between these two series of payments? Enter the PW for each series to support this choice. PW, Series A: PW, Series B: Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely.…arrow_forwardAn amortization of a debt is in a form of a gradient series of P20,000 on the first year, P19,500 on the second year, P19,000 on the third year, P18,500 on the fourth year. Determine the future amount of the amortization if interest is 0.1.arrow_forwardSuppose that, to cover some of your college expenses, you are obtaining a personal loan form your uncle to be repaid in three years. If your uncle always earns 10% interest (compounded monthly) on his money invested in various sources and you paid him $20,223. What was the principal amount of the loan?arrow_forward
- How much interest is payable each year on a loan of $3,000 if the interest rate is 12% (simple interest) per year when half of the loan principal will be repaid as a lump sum at the end of five years and the other half will be repaid in one lump-sum amount at the end of eight years? How much interest will be paid over the eight-year period? The interest amount is paid at the end of each year. Year. Interest Accrued for Year 1 ? 2 ? 3 ? 4 ? 5 ? 6 ? 7 ? 8 ? Total Interest ?arrow_forwardWhat payment X 10 years from now is equivalent to a payment of P 1,0006 years from now, if interest is 15% compounded (a) annually, and (b) monthly?arrow_forwardA recent government study reported that a college degree is worth an extra $23,000 per year in income (A) compared to what a high-school graduate makes. If the interest rate (i) is 6% per year and you work for 40 years (N), what is the future compound amount (F) of this extra income?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education