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15. How much must a person put into the bank today if he wants $50,000 in 5 years at 6% compounded semi-annually. A) $35,205 B) $37,205 C) $37,365 D) $37,720

15. How much must a person put into the bank today if he wants $50,000 in 5 years at 6% compounded semi-annually. A) $35,205 B) $37,205 C) $37,365 D) $37,720

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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8. In the cash-flow diagram shown in the given figure: A) 7.50% compounded semi-annually C) 7.50% compounded daily A= $4500 B) $37,205 F-? 7-10% C) 478 A) $620.9 B) $6209 nollaoup C) $6290 odtul 21D) None of the mentioned. 9. Which of the following statements is (are) correct:10ps Anado si noon Inaltatz stefan. (A) The change in the amount of money over a given time period is called 'time value' of money, a most important concept in engineering economy GE172(8 (B) The manifestation of the time value of money is termed as interest, oval o banal. (C) Interest on borrowing = present amount owed - original loan (D) All of the mentioned. 10. How much must a person put into the bank today if he wants $50,000 in 5 years at 6% TE compounded annually: A) $37,365 B) $37,205 C) $37,890 D) $36,36511. 11. A machine has a first cost of $150,000. Its service life is 10 years when it can be sold for $30,000. Annual maintenance costs are $2,500. At years 4 and 8, it will require major servicing at a cost of $20,000 each. What is the equivalent annual cost of owning and operating this machine, assuming that the rate is 10%? A) 27.000 B) 25.900 C) 28.680 D) 25.570 12. Find the compound interest on $1000 for 10 years at 4% per annum if the interest is calculated quarterly A) 398 B) 486 13. Which of the following is depleted recourse? A) Coal Mines B) Land C) Machinery D) all of the mentioned 14. Ali is about to renew the mortgage on his home and understands that it is much cheaper to make his mortgage payments as frequently as possible. He is considering four possible interest rate offers. Which would be the most beneficial offer to a borrower like Ali? 6 7 Year B) 7.50% compounded annually D) 7.50% compounded monthly 15. How much must a person put into the bank today if he wants $50,000 in 5 years at 6% compounded semi-annually. A) $35,205 C) $37,365 D) 504 D) $37,720
Transcribed Image Text:8. In the cash-flow diagram shown in the given figure: A) 7.50% compounded semi-annually C) 7.50% compounded daily A= $4500 B) $37,205 F-? 7-10% C) 478 A) $620.9 B) $6209 nollaoup C) $6290 odtul 21D) None of the mentioned. 9. Which of the following statements is (are) correct:10ps Anado si noon Inaltatz stefan. (A) The change in the amount of money over a given time period is called 'time value' of money, a most important concept in engineering economy GE172(8 (B) The manifestation of the time value of money is termed as interest, oval o banal. (C) Interest on borrowing = present amount owed - original loan (D) All of the mentioned. 10. How much must a person put into the bank today if he wants $50,000 in 5 years at 6% TE compounded annually: A) $37,365 B) $37,205 C) $37,890 D) $36,36511. 11. A machine has a first cost of $150,000. Its service life is 10 years when it can be sold for $30,000. Annual maintenance costs are $2,500. At years 4 and 8, it will require major servicing at a cost of $20,000 each. What is the equivalent annual cost of owning and operating this machine, assuming that the rate is 10%? A) 27.000 B) 25.900 C) 28.680 D) 25.570 12. Find the compound interest on $1000 for 10 years at 4% per annum if the interest is calculated quarterly A) 398 B) 486 13. Which of the following is depleted recourse? A) Coal Mines B) Land C) Machinery D) all of the mentioned 14. Ali is about to renew the mortgage on his home and understands that it is much cheaper to make his mortgage payments as frequently as possible. He is considering four possible interest rate offers. Which would be the most beneficial offer to a borrower like Ali? 6 7 Year B) 7.50% compounded annually D) 7.50% compounded monthly 15. How much must a person put into the bank today if he wants $50,000 in 5 years at 6% compounded semi-annually. A) $35,205 C) $37,365 D) 504 D) $37,720
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