Answered: An asset originally costs P500,000…

An asset originally costs P500,000 depreciates in value each year by 10% of its value at the beginning of that year. A. Find its book value when it is 6 years old?

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

5th Edition

ISBN:9781305084766

Author:Saeed Moaveni

Publisher:Saeed Moaveni

Chapter20: Engineering Economics

Section: Chapter Questions

Problem 46P

See similar textbooks

Related questions

Q: You need a P40,000 per year for four years to go to college. Your father invested P50,000 in a 7%…

A: The values given in the question are as follows Invested amount(at the time of born)=P50,000 Account…

Q: 1.You deposit $50,000 into a fund that pays 5% per year compounded annually. You plan to make the…

A: Given:- P = $50000 R = 5% per annum To find:- Value of X

Q: What is the lump sum?

A: the lump sum amount is 23120.07/-

Q: Lukas Center acquired a new Laser Machine worth ₱580,000.00. The center plans to pay 35% advance…

A: Given Data Worth of new Laser Machine =580000.00 Advance payment = 35% Time duration to pay the…

Q: Copy of Find the amount at the end of 5 years and 9 months if P9 000 is invested at 20% compounded…

A: Given, Principle (P) = P9000 Interest rate (R) = 20% or 0.20 Number of compounding period (n) = 4…

Q: bought an equipment costing P60,000 payable quarterly payments each installment payable at the…

A: The amount is 7371.911/-

Q: Compute the future value of a $3500 deposit made today, after eight years, in an account that pays…

Q: Determine the present worth of the following cash flows based on an interest rate of 6.01% per year,…

Q: What is the principal amount if the amount of interest at the end of 2 1/2 year is P4,500 for a…

Q: Determine the interest rate in % compounded annually if the compound amount factor is 1.569 for a…

A: the formula for compound interest is the following F.A =(P.A)(1+r)t F.A = Final Amount P.A =…

Q: • A man secured a P 9,178 loan at 3 % interest rate. Find the annual amortization to extinguish it…

A: Given data- Loan amountS=P9,178Rate of interest i=3%Timen=2yrs. To find- Annual amortization(I).

Q: How long will it take for an investment to fivefold its amount if money is worth 14% compounded…

A: Using the formula for compound interest in which money is interested continously.

Q: Question 7 A man bought a lot worth P1.1M if paid in cash. On the installment basis, he paid a down…

A: Given Interest = 16.3 %

Q: A businessman purchases a common stock worth P1,000 every year for a period of 10 years. At the of…

A: Total cost of the stock bought = P1000*10=P10000 Stock sold at = P12000 Return on stock = P2000 %…

Q: #20,000.00 borrowed today for 2 years at 5% compound interest will result in how much total interest…

A: Given data: Principal amount (P) = 20,000 Rate of interest (r) = 5% No. of year (n) =…

Q: 2. A machine purchased for P150,000 its estimated life is 15 years, after which it will be sold for…

Q: 3. A machine having a first cost of P 60,000.00 will be retired at the end of 8 years. Depreciation…

Q: 4. For a deposit of $ 1023 at 7.8% interest compounded continuously over 4 years, find the interest…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Determine the present worth of the following cash flows based on an interest rate of 7.43% per year,…

Q: Your rich uncle has recently passed away and left you an inheritance in the next 30 years. You will…

Q: Your future company has purchased a machine and has entered into a contract that requires the…

A: To find:- value of X

Q: what is the balance and amount of interest earned if $2500 is invested at 6% compounded monthly for…

A: Given data- Principal (P) = $2500 Rate of interest (R) = 6% compounded monthly. Time (n) = 5 years

Q: How long will it take for $7000 to double at the rate of 8%

A: It is required to determine the time using the relation. A=P1+rn Here A is the amount after t years,…

Q: Calculate the total present worth of the cash flow below using an interest rate of 2.8% and when Q…

Q: The amount of 10000 is borrowed at 30% per annum simple interest, how much will be due at the end of…

Q: How many years will be required for a sum of money to double, if the annual interest rate is lo%,…

A: rate of interest = r = 0.10 Compounding quarterly = 4 times per year

Q: b) The time it would take for a given sum of money to double at 4% per year us) simple interest is…

A: Simple Interest , I = (PTR)/100 Time taken to double the principal amount is 25 years.

Question

100%

An asset originally costs P500,000 depreciates in value each year by 10% of its value at the beginning of that year. A. Find its book value when it is 6 years old?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.

Similar questions

3. A machine having a first cost of P 60,000.00 will be retired at the end of 8 years. Depreciation cost is computed using a constant percentage of the declining book value. What is the total cost of depreciation in pesos, up to the time the machine is retired if the annual rate of depreciation is 28.72%? A. 56,000 C. 58,000 B. 57,000 D. 59,000
#20,000.00 borrowed today for 2 years at 5% compound interest will result in how much total interest at the end of Year 2?
2. A machine purchased for P150,000 its estimated life is 15 years, after which it will be sold for P40,000 find the book value during the 6" year if the sum of the year digit depreciation is used.
1.You deposit $50,000 into a fund that pays 5% per year compounded annually. You plan to make the following withdrawals. You withdraw $X one year from now, $2X three years from now, and $3X five years from now. If the last withdrawal depletes the fund, what is the value of X?
what is the balance and amount of interest earned if $2500 is invested at 6% compounded monthly for five years?
K
You need a P40,.000 per year for four years to go to college. Your father invested P50,000 in a 7% account for your education when you were born. If you withdraw the P40,000 at the end of your 17th, 18th, 19th, and 20th years, how much money will be left in the account at the end of your 21st year?
Calculate the total present worth of the cash flow below using an interest rate of 2.8% and when Q is: i. $1950 ii. $1250 iii. $580 iv. $0 0 1 2 3 4 5 6 Which case from (i), (ii), (iii), and (iv) produces the highest total present worth? is it the best case to invest in? Why? $14700 + $335 $335 → $750 00sS → $950
Your future company has purchased a machine and has entered into a contract that requires the company to pay $2000 each year for the upgrade of machine components at the end of years 6, 7, and 8. In anticipation of the upgrade cost, your company has decided to deposit equal amounts ( X ) at the end of each year for five years in a row in an account that pays i = 6% . The first deposit is made at the end of the first year. What is the value of X?
How long will it take for an investment to fivefold its amount if money is worth 14% compounded continuously? 12 13 14 O 1
Your rich uncle has recently passed away and left you an inheritance in the next 30 years. You will receive $2,000 per year from year 5 through year 10, $5,000 per year from year 11 through year 20, and $3,500 per year from year 21 to year 30. At a rate of 7 percent compounded annually, what is the present value of your uncle's generosity?
9 Determine the present worth of the following cash flows based on an interest rate of 6.01% per year, compounded annually. Round off to two decimal places. End of Year 0 = Php 5963 End of Year 1 = Php 5852 End of Year 2 = Php 5859 End of Year 3 = Php 5712 End of Year 4 = Php 5362 End of Year 5 = Php 5127