Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 3, Problem 40P
To determine
Calculate the present value.
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Engr. Manuel decided to buy a townhouse amounting to 3.3 Million if paid today. He is been told that he is to pay this at the rate of 5.45% compounded semi-annually. If he is to pay 174,617 every six months, how long in years it will take for him to pay the townhouse fully if payments are made at the beginning of the month?
Write your final answer in two decimal places.
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*using DEFERRED ANNUITY FORMULAS ONLY!
*use given data below
Answer: 100,701.34
Question: Find the present value of an annuity of P30,000 payable annually for 10 years with the first payment at the end of the 10th year, if the money is worth 8% compounded annually.
Draw cashflow diagram if needed!
Solve the following and draw the cash flow diagram
From the given cash flow diagram, find the future value of the geometric gradient with unknown constant rate f at i = 0.111 compounded annually
-rate of increase should be rounded of by 5 decimal places and final answer to 2 decimal places
-the value in the graph is 5000 and 9900
Note: Do not use excel
Chapter 3 Solutions
Contemporary Engineering Economics (6th Edition)
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
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- What is the amount $R that makes the two cash-flow diagrams below equivalent? The interest rate is 10% compounded continuously. 500 R R R 500 500 500500 0 1 2 3 4 5 6 2 3 4 5 500 ΕΟΥ 500 ΕΟΥ 1,000arrow_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_forwardAnswer true or false for the following questions: a) If you multiply the A/F, F/P, and P/G factors together, you will obtain thevalue for the G/A factor. b) For an arithmetic gradient series of monthly cash flows that begins at the endof 25th month, the A/G factor will yield an “A” value beginning at the end oftwo years. c) Consider arithmetic gradient series, G = 100, starting at time period 7 withfive cash flows. An equivalent uniform series A, starting at time period 2 forfour time periods is obtained by 100(P/G, i%, 6)(P/F, i%, 4)(A/P, i%, 4). d) The difference between consecutive cash flow balances corresponding toconsecutive time periods in discounted payback period calculation is equaland the cash flow balance is zero at payback period. e) If the B/C ratio for three alternatives A, B, and C are 2.8, 3.3 and 1.95respectively, the best alternative is always “B” as it has the largest B/C ratio.arrow_forward
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