Engineering Economy
Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
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Chapter 1, Problem 26P
To determine

Draw the cash flow diagram.

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Construct a cash flow diagram that represents the amount of money that will be accumulated in 7 years from an initial investment of $24,000 now and $3,000 per year for 7 years at an interest rate of 12% per year. I hope someone can help me and explain how it is solved
(a) Calculate the amount deposited 1 year ago to have $1000 now at an interest rate of 5% per year. • (b) Calculate the amount of interest earned during this time period.   please show me how you solved it mathematically
An A&E firm planning for a future expansion deposited $40,000 each year for 5 years into a sinking (investment) fund that was to pay an unknown rate of return. If the account had a total of $451,000 immediately after the fifth deposit, what rate of return did the company make on these deposits?
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