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 34P
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
3-74. Peggy Sue was left $50,000 by her uncle.
She has decided to put it into a savings ac-
count for the next year or so. She finds that
there are three different interest rates at sav-
ihgs institutions: 5%% compounded annually,
8. Consider a series of cash flows that begins with $1000 received at the end of year 7. At the end of
year 8, you receive $1100, and $1200 at the end of year 9. This pattern of increasing cash flow
receipts occurs through the end of year 20. What is the present equivalent value (time 0) of this
cash flow series when the interest rate is 8% per year?
You receive a loan for $5,348 where the APR is 5.5%, compounded monthly. You make a payment of $328.28 on this loan every 6 months (i.e., 2 payments per year), which will enable you pay off the loan in eactly 11 years. Immediately after making your regular payment at the end of 8 years, you desire to pay the remainder of the loan in a single payment. Compute the amount you must pay for the remainder of the loan."
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
- When you take your job, you decide to start saving for your retirement. You put $5,000/yr into the co’s plan, which averages 8% interest/yr. Five yrs later, you move to another job and start a new plan. You never get around to merging the funds, if the 1st plan continued to earn interest at the rate of 8%/yr for 35 yrs after you stopped making contributions, how much is the account worth?arrow_forwardIf an applicable interest rate is 7.3% per year, compounded monthly, what is its effective annual rate? Calculate to at least 4 significant figures and omit the percentage sign. For example, if your answer is 10.333333% you should then enter 10.33. If your answer is 3.777777% you should then enter 3.777.arrow_forwardYou want to accumulate $30,000 two years from now. You decide to make monthly deposits into a fund that pays a nominal rate of 4% per year compounded monthly. You would like to deposit $X every month during the first year and $2X every month during the second year. Determine the amounts of your monthly deposits during year 1 and year 2. (No Excel Please)arrow_forward
- A store is expected to generate $10,000 in earnings next month. How much earnings will be accumulated by the end of the year if the earnings are projected to grow by 30 basis points (0.3%) each month, and if the interest rate is 3.72% APR compounded monthly?arrow_forwardHow long for $1,000 to become $2,000 invested at 7.8% compounded annually? Semi-annually? Quarterly? Monthly? Daily? Answers: 9.23 ; 9.06 ; 8.97 ; 8.92 ; 8.89 (years)arrow_forwardLuis has $180,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis is planning to "roll over" his assets to a new account. Luis also plans to put $3000/quarter into the new account until his retirement 25 years from now. If the new account earns interest at the rate of 4.5% / year compounded quarterly, how much will Luis have in his account at the time of his retirement? (Round your answer to the nearest cent.) $arrow_forward
- Suppose you were given a one time gift of $10,000 to put into a savings account. The account earns 3% per year. You are unable to withdraw any money from the account until you retire (assume 35 years). How much will the account be worth when you retire?arrow_forwardA sum of $10,000 now (time 0) is equivalent to the following cash flow diagram. What is the value of $B if the annual interest rate is 4%? $2,200 $B $1,500 $1,500 1 3 4 6 7 End of Year $10,000 Cic the icon to view the interest and annuity table for discrete compounding when i= 4% per year. ..... The value of $B is $ (Round to the nearest dollar.)arrow_forward(30 points) The following cash flow diagram indicates the monthly payments you will have in the future. Assume that the interest rate is 12% per year. $3.200 $2.800 $2,400 $2,000 16 17 18 19 20 21 a) (15 points) What annual amount should you save for the first 12 months to complete the following payments starting from 18th month, if you expect your parents to also deposit into your account $1000 at the beginning of month 2? b) (15 points) Explain how your answers to (a) will change if the interest rate increases. Write your comments in your words.arrow_forward
- ! Required information The Pedernales Electric Cooperative estimates that the present worth now of income from an investment in renewable energy sources is $23,000,000. There will be no income in years 1 and 2, but in year 3 income will be $775,000, and thereafter it will increase according to an arithmetic gradient through year 15. What is the required gradient if the interest rate is 15% per year? Solve using factors. The required gradient is $arrow_forwardWhat is the present value of a $750 payment when interest is 6.75% in 2 years? $657.90 $702.58 $447.76 $800.63arrow_forwardPleasearrow_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