EBK CONTEMPORARY ENGINEERING ECONOMICS
6th Edition
ISBN: 8220101336736
Author: Park
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 35P
To determine
Calculate the present wroth.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A series of monthly cash flows is deposited into an account that earns 12% nominal interest compounded monthly. Each monthly deposit is equal to $2100. The first monthly deposit occurred on June 1, 2012 and the last monthly deposit will be on January 1, 2019. The account (the series of monthly deposits, 12% nominal interest, and monthly compounding) also has equivalent quarterly withdrawals from it. The first quarterly withdrawal is equal to $5000 and occurred on October 1, 2012. The last $5000 withdrawal will occur on January 1, 2019. How much remains in the account after the last withdrawal?
A debt of P 10,000 with interest at the rate of 20% compounded semi-annually is to be amortized by 5 equal payments at the end of each 6 months, the first payment is to be made after 3 years. Find the semi-annual payment and construct an amortization table.
A nominal interest rate of “12% per year compounded yearly” is closest to:
(a) 1% per month effective rate
(b) 3% per quarter effective rate
(c) 6% per 6 months effective rate
(d) 12% per year effective rate
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
- A loan was to be amortized by a group of four end-of-year payments forming an ascending arithmetic progression. The initial payment was to be P 5,000 & th difference between successive payments was to be P 400. But the loan was renegotiated to provide for the payment of equal arther than uniformly varying sums. If the interest rate of the loan was 15%, what was the annual payment?arrow_forwardA loan of P5000 is made for a period of 13 months, from January 1 to January 31 the following year, at interest rate of 20%. What future amount is due at the end of the loan period for an (a) ordinary and (b) exact interest rate?arrow_forwardAnnual deposits were made in a fund earning 10% per annum. The first deposit was P2000 and each deposit thereafter was P200 less than the preceding one. Determine the amount in the fund after the sixth deposit.arrow_forward
- A debt of P 12,000 with interest of 20% compounded quarterly is to be amortized by equal semi-annual payments over the next three years, the first due in 6 months. How much is the semi-annual payments?arrow_forwardEqual end of year payments of $263.80 each are being made on a $1,000 loan at 15% per year compounded monthly. a. How many payments are required to repay the entire loan? b. Immediately after the third payment, what lump sum amount would completely pay off the loan?arrow_forwardA vending machine costs P75000 if paid in cash. On the installment plan a purchaser should pay P40000 down payment and 8 quarterly installments where the first due is at the end of the first year. If money is worth 15% compounded monthly determine the quarterly installmentarrow_forward
- A compound that pays 6% for the first 3 years, 5% for the next 4 years, and 4% for the last 2 years.(1+9+3)*1000 TL has been deposited into the savings account. The amount of money that will be saved in the fund at the end of the 9th yearcalculate?arrow_forwardMiss Emma borrowed $3,000 from a lending company for 3 years at 12%. At the end of 3 years, it renews the loan for the amount due plus $2,000 more for 2 years at 12%. What is the lump sum due?arrow_forwardA certain sum of money will be deposited in a savings account that pays interest at the rate of 6% per year, compounded annually. If all of the money is allowed to accumulate, how much must be deposited initially so that $5,000 will have accumulated after 10 yearsarrow_forward
- A contractor obtained a 10000 loan at the rate of 6% compounded annually in order to repair a house. How much must he pay monthly to amortize the loan within a period of 10 years?arrow_forwardA certain property is being sold and the owner receives two bids. The first bidder offered to pay P400000 each year for 5 years and the payment is to be made at the beginning of each year. The second bidder offered to pay P240000 fest ysar, P350000 the second year, and P540000 each year for the next 3 years, all payments to be made at the beginning of each ysar, If money is worth 20% compounded annually, which bid should the owner of the property accept?arrow_forwardA man borrowed an amount of P150,600 to bank that offers an interest rate of 5.36% compounded continuously and has a maturity date of 6 years. He plans to pay the loan at an amount of P15,800 at the end of 2 years, and P10,450 at the end of 3 years. How much must he pay at the end of 6 years?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:PEARSON
Engineering 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 Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial 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