Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 49P
(a):
To determine
Calculate the time period.
(b):
To determine
Calculate the interest rate.
(c):
To determine
Calculate the present value.
(d):
To determine
Calculate the equivalent annual value.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
5. You receive payments of $10,000 per year from a family trust, but you don't need that
money right now.
Find FV Annuity: If you deposit your annual payments into an account earning 2% per year,
what will be the account balance in 10 years?
C= 10,000
r = 0.02
t = 10
(1 = i)^n
FV = C
=?
Find FV Annuity: If you deposit your annual payments into an account earning 2% per year,
what will be the account balance in 5 years?
2.
3.
You borrow $80,000 at 5.00% per year and will pay off the loan in equal payments starting one
year after the loan is made over a period of ten years. What are the annual end-of-year payments?
Determine the amount of interest and principal that are paid each year. What is the total interest
paid for the loan?
A distillation column is designed, purchased and installed for a cost of $? 6 million
Tha
One bank advertises an interest rate on a certificate of deposit (CD) to be 4 % compounded daily. Another
bank advertises a CD with a 4.1% effective annual rate. The principal deposited is $ 1000 for this problem.
At 4% compounded daily: F4=
At a 4.1% effective annual rate: F4 =
In which CD would you earn the most money in 4 years?
CD with given effective interest rate
O CD compounded daily at given interest rate
Chapter 4 Solutions
Engineering Economy (16th Edition) - Standalone book
Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10P
Ch. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Twelve payments of 10,000 each are to be repaid...Ch. 4 - Prob. 32PCh. 4 - Automobiles of the future will most likely be...Ch. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - A geothermal heat pump can save up to 80% of the...Ch. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Maintenance expenses for a bridge on the Ohio...Ch. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65PCh. 4 - Prob. 66PCh. 4 - Prob. 67PCh. 4 - Prob. 68PCh. 4 - Prob. 69PCh. 4 - Prob. 70PCh. 4 - Prob. 71PCh. 4 - Prob. 72PCh. 4 - Prob. 73PCh. 4 - Prob. 74PCh. 4 - Prob. 75PCh. 4 - Prob. 76PCh. 4 - Prob. 77PCh. 4 - Prob. 78PCh. 4 - Prob. 79PCh. 4 - Prob. 80PCh. 4 - Prob. 81PCh. 4 - Prob. 82PCh. 4 - Prob. 83PCh. 4 - Prob. 84PCh. 4 - Prob. 85PCh. 4 - Prob. 86PCh. 4 - Prob. 87PCh. 4 - Prob. 88PCh. 4 - Prob. 89PCh. 4 - Prob. 90PCh. 4 - Prob. 91PCh. 4 - Prob. 92PCh. 4 - Prob. 93PCh. 4 - Prob. 94PCh. 4 - Prob. 95PCh. 4 - Prob. 96PCh. 4 - Prob. 97PCh. 4 - Prob. 98PCh. 4 - Prob. 99PCh. 4 - Prob. 100PCh. 4 - A large bank has increased its annual percentage...Ch. 4 - Prob. 102PCh. 4 - Prob. 103PCh. 4 - Prob. 104PCh. 4 - Prob. 105PCh. 4 - Prob. 106PCh. 4 - Prob. 107PCh. 4 - Prob. 108PCh. 4 - Prob. 109PCh. 4 - Prob. 110PCh. 4 - Prob. 111PCh. 4 - Prob. 112PCh. 4 - Prob. 113PCh. 4 - Prob. 114PCh. 4 - Prob. 115PCh. 4 - Prob. 116PCh. 4 - Prob. 117PCh. 4 - Prob. 118PCh. 4 - Prob. 119PCh. 4 - Prob. 120PCh. 4 - Prob. 121PCh. 4 - Prob. 122PCh. 4 - Prob. 123PCh. 4 - Prob. 124PCh. 4 - Prob. 125PCh. 4 - Prob. 126PCh. 4 - Analyze the truth of this statement, assuming you...Ch. 4 - Prob. 128PCh. 4 - Prob. 129SECh. 4 - Prob. 130SECh. 4 - Prob. 131SECh. 4 - Prob. 132SECh. 4 - Prob. 133CSCh. 4 - Prob. 134CSCh. 4 - Prob. 135CSCh. 4 - Prob. 136FECh. 4 - Prob. 137FECh. 4 - Prob. 138FECh. 4 - Prob. 139FECh. 4 - Prob. 140FECh. 4 - Prob. 141FECh. 4 - Prob. 142FECh. 4 - Prob. 143FECh. 4 - Prob. 144FECh. 4 - Prob. 145FECh. 4 - Prob. 146FECh. 4 - Prob. 147FECh. 4 - Prob. 148FECh. 4 - Prob. 149FECh. 4 - Prob. 150FECh. 4 - Prob. 151FE
Knowledge Booster
Similar questions
- Simple vs. compounded interest. Show your complete solution and box your answers. To make CDs look more attractive than they really are, some banks advertise that their rates are higher than their competitors' rates; however, the fine print says that the rate is a simple interest rate. If a person deposits $10,000 at 10% per year simple interest, what compound interest rate would yield the same amount of money in 3 years?arrow_forwardHow 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_forwardYou borrow $9,500 at 14% per year and will pay off the loan in three equal annual payments with the first occurring at the end of the fourth year after the loan is made. The three equal annual payments will be $6,062.4. Which of the following is true for your first payment at the end of year 4? O Interest = $0; principal = $6,062.4 Interest = $1,330; principal = $4,732.4 Interest = $6,062.4; principal = $0 Interest = $1,970.45; principal = $4,091.95arrow_forward
- 9.How much will you accumulate if you invest $800 a year for 10 years at a rate of 8% per year? How much will you accumulate if $200 per quarter is invested at a rate of 8% per year compounded quarterly? 10.You now have $20,000 which can be invested at 9% per year. a.For how many years can you spend $2671? b.What is the most you can spend per year for the next 20 years?arrow_forwardYou invest $10,000 in a fund that pays 7% per year for 5 years. How much is in the fund at the end of 5 years if (forgetting leap years and making “convenient” assumptions): a. Compounding is annual? b. Compounding is quarterly? c. Compounding is monthly? d. Compounding is daily?arrow_forward13. How long will it take for ₱2000 to amount to ₱2,346 if invested at 5% compounded bi-monthly?arrow_forward
- QUESTION 2 a) Assume that you borrow $30,000 to purchase a new automobile and that you finance it for a four-year loan at the interest rate of 4% per year. If you make one payment per year for four years, what will the yearly payment be? What is the total amount that will be paid out on the loan?arrow_forward2. How long will an investment double itself if interest is earned at a compounded rate of: a. 3% per quarter? b. 0.25% per week (assumption: 1 year = 52 weeks)?arrow_forwardNEED HELP ASAP! THANK YOU SO MUCH ! Problem 1: What is the future equivalent of $1,000 invested at 8% simple interest per year of 2.5 years?Problem 2: An investment earns 20% compounded semiannually. After how many years will it triple?Problem 3: A man is required to pay P57,500 at the endof 15 days and for P60,000 at the end of 60 days. Determine the rate of interest. Problem 4: How much should you deposit in an account 5% interest semi-annually if you want to have $25,000 after 10 years?Problem 5: How much should Jane return at the end of 60 days if she loaned P10,000 from a friend at a simple interest of 10%?arrow_forward
- You borrowed $10,000 from a local bank, with the agreement that you will pay back the loan according to a graduated payment plan. If your first payment is set at $1,500, what would the remaining payment look like at a borrowing rate of 7% over five years? (the value of G approximately is...) $10,000 0 $1.500 20 30 4Garrow_forward1. Jessica buys a television set from a merchant who asks P14,000.00 at the end of 80 days. She wishes to pay the merchant immediately and the money assumed 10% of simple interest. What is the cash price today? Draw the cash flow diagram. 2.How long does it takes a principal of P25,000 at a simple interest rate of 5% per year to become P30,000? Draw the cash flow diagram. 3. Determine the ordinary and exact simple interest on $5,000 for the period from January 15 to June 20,2015 if the rate of simple interest is 14% 4. 13. What payment X 10 years from now is equivalent to a payment of P500,000 7 years from now, if interest rate is 12% compounded semi-annually? 5. A factory operator bought a diesel generator set for P10,000 and agreed to pay the dealer uniform sum at the end of each year for five years at 8% compounded annually, that the payment will cancel the debt and principal interest. What is the annual payment?arrow_forward15 Part 2 of 2 00:22:29 Required information A-1 Mortgage makes loans with the interest charged on the loan principal rather than on the unpaid balance. Consider a 9. year loan of $10.000 at 12% per year. If interest is charged on the unrecovered balance, what equal annual payment would be required to complete the repayment of the loan in 9 years? The equal annual payment required is $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