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6.A man invests P10,000 now for the college education of his 2-year old son. If the fund earns 14% effective, how much will the son get each year starting from his 18th to 22nd birthday?

6.A man invests P10,000 now for the college education of his 2-year old son. If the fund earns 14% effective, how much will the son get each year starting from his 18th to 22nd birthday?

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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6.A man invests P10,000 now for the college education of his 2-year old son. If the fund earns 14% effective, how much will the son get each year starting from his 18th to 22nd birthday? 7.Determine the present worth and the accumulated amount of an annuity consisting of 6 payments P120,000 each, the payment are made at the beginning of each year. Money is worth i5% compounded annually. 8.Calculate the present value on January 1, 20X0 of a perpetuity paying S1,000 at the end of each month starting from January 20XÒ. The monthly discount rate is 0.8%. 9. Maintenance cost for a new piece of manufacturing equipment is expected to be $5,000 in the first year and increase $250 per year for every year thereafter. If the cost of funds is 10%, what is the present worth cost of maintenance for the next 5 years? 10. Determine the present worth and the accumulated amount of an annuity consisting of 6 payments P120,000 each, the at the beginning of each year. Money is worth 15% compounded annually. payment are made
Transcribed Image Text:6.A man invests P10,000 now for the college education of his 2-year old son. If the fund earns 14% effective, how much will the son get each year starting from his 18th to 22nd birthday? 7.Determine the present worth and the accumulated amount of an annuity consisting of 6 payments P120,000 each, the payment are made at the beginning of each year. Money is worth i5% compounded annually. 8.Calculate the present value on January 1, 20X0 of a perpetuity paying S1,000 at the end of each month starting from January 20XÒ. The monthly discount rate is 0.8%. 9. Maintenance cost for a new piece of manufacturing equipment is expected to be $5,000 in the first year and increase $250 per year for every year thereafter. If the cost of funds is 10%, what is the present worth cost of maintenance for the next 5 years? 10. Determine the present worth and the accumulated amount of an annuity consisting of 6 payments P120,000 each, the at the beginning of each year. Money is worth 15% compounded annually. payment are made
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