Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 57P
To determine
Calculate the present value.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
10. Find the amount due at the end of 15 months whose present value is P2,000 at 5% simple discount.
ANSWER: 2,133,33
Assume that your father is now 50 years old and plans to retire after 10 years from now. He is expected to live for another 25 years after retirement. He wants a fixed retirement income of Rs. 5,00,000 per annum. His retirement income will begin the day he retires, 10 years from today, and then he will get 24 additional payments annually. Your father has current savings of Rs. 10,00,000 and he expects to earn a return on his savings @ 10% p.a., annually compounding. How much (to the nearest of rupee) must your father save during each of next 10 years to meet his retirement goal?
You are preparing to buy a vacation home eight years from now. The home will cost $50,000 at that time. You plan on saving three deposits at an interest rate of 10%: Deposit 1: Deposit $10,000 today. Deposit 2: Deposit $12,000 two years from now. Deposit 3: Deposit $X five years from now. How much do you need to invest in year five to ensure that you have the necessary funds to buy the vacation home at the end of year eight?
Chapter 4 Solutions
Engineering Economy (17th Edition)
Ch. 4 - Compare the interest earned by 9,000 for five...Ch. 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 - Prob. 31PCh. 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 - DuPont claims that its synthetic composites will...Ch. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 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 - Prob. 101PCh. 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. 151FECh. 4 - Prob. 152FECh. 4 - Prob. 153FE
Knowledge Booster
Similar questions
- A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is to accumulate P2,000,000 in the account by the time he retires from work in 20 years. A local bank is willing to open a retirement account that pays 8% interest, compounded quarterly, throughout the 20 years. He wishes to start with a deposit at the end of the end of 1st quarter and increase the deposit by 4% per quarter thereafter. What should be the size of his first quarter deposit?arrow_forwardYou are offered a 15-year investment and ask to select your preferred terms of interest which of the following is the most profitable option if the interest rate is 8% per year. (a) continuously. (b) annually, (c) semi-annually, (d) quarterly, (e) monthly, (f) daily. SHOW YOUR COMPLETE SOLUTION, 4 DECIMAL PLACES ONLYarrow_forwardYou are preparing to buy a vacation home five years from now. The home will cost $100,000 at that time. You plan on saving three deposits at an interest rate of 10%:Deposit 1: Deposit $12,000 today.Deposit 2: Deposit $15,000 two years from now.Deposit 3: Deposit $ X three years from now.How much do you need to invest in year three to ensure that you have the necessary funds to buy the vacation home at the end of year five?arrow_forward
- To secure a return of 4%, at what price should a bond be purchased if it is redeemable at P 1,000 in 10 years and plays annual dividends of P 35,00?arrow_forwardToday, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years later you borrow P50,000 from a bank at 20% annual interest and invest the fund. Two years later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal, you start taking P20,000 per year out of funds. After five withdrawals, you withdraw the balance in the fund. How much was withdrawn? Kindly provide a CLEAR and COMPLETE answer.arrow_forwardYou want to open a savings plan for your future retirement. You are considering the following two options: Option 1: You deposit $1,000 at the end of each quarter for the first 10 years. At the end of 10 years, you make no further deposits, but you leave the amount accumulated at the end of 10 years for the next 15 years. Option 2: You do nothing for the first 10 years. Then you deposit $6,000 at the end of each year for the next 15 years. If your deposits or investments earn an interest rate of 6% compounded quarterly and you choose Option 2 over Option 1, then at the end of 25 years from now, you will have accumulated (a) $7,067 more. (b) $8,523 more. (c) $14,757 less. (d) $13,302 less.arrow_forward
- You are considering investing $2,000 (n=0) at a simple interest rate of 11% annually for five years (N=5) or investing at the initial moment $1,500 (n=0) and $500 two years after (n=2) at 10% compounded monthly for five years total (N=5). Draw the cash flow and beam diagram for the two options. Which option is better at the end of the 5th year? Please provide all steps for work!!!arrow_forwardWhat is the present value of a P90,000 annual annuity for 10 years with an additional P1,000,000 received at the end of the 10th year if the current level of interest rates is 8 per cent? a. P1.9M b. P1.363M c. P1.067M d. P1.167Marrow_forwardToday, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years later, you borrow P50,000 from a bank at 20% annual interest and invest the fund. Two years later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal, you start taking P20,000 per year out of the fund. After five withdrawals, you withdraw the balance in the fund. How much was withdrawn?arrow_forward
- ! Show Full Solution ! *using DEFERRED ANNUITY FORMULAS ONLY *use given data below Question: Today you invest P100,00 into a fund that pays 25% interest compounded annually. Three years later you borrow P50,000 from a bank at 20% annual interest and invest in the fund. Two years later you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal you taking P20,000 per year out of the fund. After five withdrawals you withdrawn the balance in the fund. How much was withdrawn?arrow_forwardYou plan to open a retirement account. Your employer will match 50% of your deposits up to a limit on the match of $2,500 per year. You believe the fund will earn 12% over the next 30 years, and you will make 30 deposits of $5,000, plus 50% employer matching, totaling $7,500 per year. a. How much money will be in the account immediately after the last deposit? b. How much total money will you put into the fund?arrow_forwardSuppose the maintenance for a piece of equipment costs P2,669 on year 1 and increases by 5.69% every year for 20 years. The value of money is 9.12%. What is the equivalent present cost over the time horizon? Write your final answer in two decimal places.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningMicroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning