Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 21P
(a):
To determine
Calculate the future worth.
(b):
To determine
Calculate the future worth through TVM.
(c):
To determine
Calculate the future worth through spreadsheet.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Determine the F/P factor for 10 years if the interest rate is 2% per month compounded daily. Assume 30 days per month.
Your boss, who never took an engineering economy course is buying a new house and needs your help in answering some questions. The loan amount will be in the “jumbo loan” category of $600,000 at (1) 7.0% per year compounded monthly over 30 years, or (2) 6.625% compounded monthly over 15 years. There are no loan initiation fees, points paid, or other charges. Prepayment, if desired, can be done without penalty. Solve, a. What is the monthly payment for plan (1)? b. What is the monthly payment for plan (2)? c. What is the effective annual interest rate for plan (1)? d. What is the effective annual interest rate for plan (2)? e. What is the total interest paid over the life of loan (1)? f. What is the total interest paid over the life of loan (2)?
Q6. Construct a cash flow diagram to find the equivalent present worth of a future outflow of
$50,000 in year 5 at an interest rate of 5% per year
79
Chapter 3 Solutions
Basics Of Engineering Economy
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Convert an interest rate of 1.5% per month into a...Ch. 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 - Erbitux is a colorectal cancer treatment drug that...Ch. 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 - The initial cost of a pulverized coal cyclone...Ch. 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. 68APQCh. 3 - Prob. 69APQCh. 3 - Prob. 70APQCh. 3 - Prob. 71APQCh. 3 - Prob. 72APQCh. 3 - Prob. 73APQCh. 3 - Prob. 74APQCh. 3 - Prob. 75APQCh. 3 - Prob. 76APQ
Knowledge Booster
Similar questions
- Kevin wishes to become a millionaire by the time he is 60 years old. He believes he can obtain a 12% rate of return compounded semi-annually by investing for it. He plans to invest a uniform sum of money each year, beginning on his 20th birthday and continuing through his 59th birthday. How much money should Kevin set aside in this investment each year for him to be a millionaire on his 60th birthday?arrow_forwardAcme Manufacturing Company is considering purchasing a maintenance contract for its new waste management systems. Acme plans to begin the contract in year 5 and continue through year 10. The cost of the contract is $11,300 per year, increasing by $300 each year. If the company wishes to pre-pay the contract with uniform payments in year 1 through year 5, what is the annual payment that Acme has to pay? Assume Acme's minimum attractive rate of return is 13% per year.arrow_forwardnts Skipped eBook Hint Turik Electronics manufactures microprocessor-based soft starters that use thyristors for controlled reduced voltage during starting and stopping. The company is planning a production-line expansion that will cost $1.2 million. If the company uses a minimum attractive rate of return of 16% per year, what is the equivalent annual cost in years 1 through 5 of the investment? (Enter your answer in dollars and not in millions of dollars.) The equivalent annual cost is $arrow_forward
- You deposit $10,000 in an investment account that earns a nominal interest rate of 12% per year compounded daily. How much money will the account have at the end of the first year? Assume 365 days per year.arrow_forwardPittsburgh Custom Products (PCP) purchased a new machine for ram-cambering large I beams. PCP expects to bend 90 beams at $1,800 per beam in each of the first 3 years, after which it expects to bend 100 beams per year at $2,600 per beam through year 9. If the company's minimum attractive rate of return is 17% per year, what is the present worth of the expected revenue? The present worth of the expected revenue is $arrow_forwardHow much interest is payable each year on a loan of $2,000 if the interest rate is 10% per year when half of the loan principal will be repaid as a lump sum at the end of four 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?arrow_forward
- A 20-year-old student decided to set aside $100 on his 21st birthday for investment. Each subsequent year through his 55th birthday, he plans to increase the investment on a $100 arithmetic gradient. He will not set aside additional money after his 55th birthday. If the student can achieve an 8% rate of return, what is the future worth of the investments on his 65th birthday?arrow_forwardSMS Inc. wants to have enough money to purchase a new tractor-trailer in 5 years. If the unit will cost $500,000, how much should the company set aside each year (starting at the end of year 1 and each year until year 5) if the account earns a compound interest of 12% per year? (All the alternatives presented below were calculated using compound interest factor tables including all decimal places) $283,700 $138,705 $78,705 $61,615arrow_forwardBROAN Technologies is considering the purchase of an annual maintenance contract for its heating and air conditioning systems. Since this will be a new system, the company plans to begin the contract at the end of year 4 and continue through year 10. The cost of this contract is $4,600 per year and the company's minimum attractive rate of return is 10% per year. a. What will be the present worth of the contract? b. What will be the future worth of the contract? c. If the company wishes to pre-pay the contract with uniform payments in years one, two and three only, what will be the amount of each payment? d. What will be the equivalent uniform annual amount of the contract in years one through ten?arrow_forward
- Question 5 Costs for maintenance of buildings at an industrial complex are expected to be $1,000 in year three, $1,200 in year four and amounts increasing by $200 per year thereafter through year nine. At an interest rate of 10% per year, what is the present worth of the cash flow? Question 6 You wish to make an investment of $3,000 today, which will become $5,000 at an interest rate if 12% . How many years will it take? Please don't handwriting solutionarrow_forwardThe present worth of $1,000 deposits in years 1 through 5 and a single disbursement of $500 in year 3, if the interest rate is %10 per year for the first two years and 8% per year thereafter, is closest to: a) $4,248.215 b) $3,865.633 c) $4,262.12 d) $4,166.450 Fast!!arrow_forwardHow much must you deposit each year into your retirement account starting now and continuing through year 9 if you want to be able to withdraw $85,000 per year forever, beginning 27 years from now? Assume the account earns interest at 11% per year. The amount to be deposited is determined to be $ 91671.69arrow_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