Determine the future value in the 8th year of the cash flow diagram shown if the interestrate is 12% per year./28 Year3457P270P320P370P420P470P520P520

We are given, interest rate = 12% = 0.12 To find, Future value Solution, FV = P( 1 + i )n

Answered: etermine the future value lIn the 8ui…

etermine the future value lIn the 8ui year of the cash fiow dlagram shown If the Interest rate is 12% per year./ 1 2 3 8 Year 5 P270 P320 P370 P420 P470 P520 P520

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 7 years of savings were made in a deposit account that pays 22% compound interest annually. The…

A: Savings are done by individuals in order to earn a benefit in the form of interest rate. The scheme…

Q: The maintenance foreman of a plant in reviewing his records found that maintenance costs on a large…

A: Equivalent Uniform Annual Maintenance Cost (EUAMC) refers to the annual cost required to maintain an…

Q: Eng'g economy: An elderly woman wishes to have P2,000,000 20 years from now. If the interest rate is…

A: First we must find the value of amount at the end of year 10 to find the annual payment required to…

Q: When Jerry Garcia was alive he bought a house for $500,000 and made a $100,000 down payment. He…

A: here we calculate the monthly payments by the following method as follow;

Q: Jack plans to expand his firm 6 years from now so he plans to make quarterly deposits of P100,000 in…

A: Quarterly deposits = 100,000 Number of years deposit is made = 5 Semi - annually compounding rate =…

Q: heska invest P60000 into an index annuity that has an average of 8.4% compounded semi annually. At…

A: Present value, PV = P60000 Interest rate = 8.4% or 4.2% half yearly Future value, FV = 1500000 n =…

Q: Marion would like to purchase a used car, which requires a down payment of 80,000.00 pesos. He is…

A: Given: Monthly salary=16000 pesos Monthly amortization=25% of his monthly salary Down payment=80000…

Q: Ezgi studies 6-year medicine program at a community college. In the beginning of her first year her…

A: The present value for a series of cash flows refers to the present value, at time 0, i.e. the sum of…

Q: .ompute for the effective interest rate per semi-annual Nominal rate = 28.9% compounded semi-annual…

A: Effective Interest Rate = (1+ i/n )n -1 Where , i = interest rate n = Compounding periods Given ,…

Q: Find the present value of an annuity‐immediate of $100 per quarter for 4 years, if interest is…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: The annual income from a rental house is $24,000. The annual expenses are $6000. If the house can be…

A: Present value: present value of a sum that is to be received or paid in the future, discounted at an…

Q: Find the present value at 10% interest of the series of payments below: End of year 1 2 3 Net Cash…

A: The present value is the current value of the future stream of income. The present value is affected…

Q: In the lottery, the lucky winner won 3000000 (three million) TL. With this together the bonus has…

A: The winning amount = 3000000 First payment plan = 350000 per year Time period = 10 years Interest…

Q: Find the present value amount that is equivalent to a uniform gradient series in wich the first…

A: In economics, present value refers to the current value of a future stream of cash flows. Future…

Q: $3,300 $8 $2,400 $2,400 1. 2 4. End of Year

A: The present worth technique of analysis is an equivalence method in which the cash flows of a…

Q: A student plan to deposit P2575 in the bank now and another P2850 for the next 2 years. If she plans…

A: Current deposit amount = P2575 Deposit in next 2 years = P2850 Withdraw after 3 years of last…

Q: Calculate the present worth of the following series of incomes and expenses if the interest rate is…

A: Introduction: Given the following information in the questions are: Interest rate per year = 11%…

Q: A car can be bought for installment by paying a downpayment of 42500 and a monthly payment of P4250…

A: A car can be bought for installment by paying a down payment of 42500 Monthly payment of P4250 for…

Q: o deposited P30,000 at the end of each year for 8 years in her savings account. If her bank paid 5%…

A: Annual deposit = 30000 Time = 8 years Interest rate = 5 % compounded annually

Q: The cash flows have a present value of 0. Compute the value of n, assuming a 10% interest rate.

A: To solve this question, we will use the annuity formula: FV=A1+rn-1r Here, the FV is the future…

Q: How much money shoid be deposited annualy in a bank account for five years you wish to witdrew…

A: Answer;

Q: a company will be paying off a loan witj annual payments of $6000 for 8 years assuming 5% annual…

A: Annual Payments = 6000 Years of payment = 8 Interest rate = 5% Formula to be used - FW = PMT(F/A ,…

Q: the investor thought he should receive 8% interest, compounded semi-annually, how much would he be…

A: *Solution :-

Q: Suppose that we have cash flows as follows. End of Year Cash Flows ($) 1 8,000 7,000 6,000 5,000 2 3…

A: Present value (PV) is the current worth of a future sum of money, accounting for the time value of…

Q: Leon and Heidi decided to invest $2500annually for only the first nine years of their marriage. The…

A: A sum's present value (PV) after it has increased with compound interest for a predetermined number…

Q: You take out a 30 year mortage at an annual interest rate of 6% which you will repay in monthly…

A: A mortgage is a type of loan specifically used to purchase real estate, such as a home or a piece of…

Q: Using an interest table gradient series factor, write an equation to find the Present Worth (at EOY…

A: We have,Interest rate (i)= 7%Initial outflow = -1000Uniform Gradient Amount (G): Uniform gradient…

Q: Mr. De Castro wishes to have P1,400,000.00 when he retires 15 years from now. If he can expect to…

A: In economics, present value refers to the current value of a future stream of cash flow. Future…

Q: The maintenance cost of a machine this year is expected to be P500. The cost will increase P150 each…

A: Maintenance cost: It refers to the expenses done by the individuals or the business to keep their…

Q: 3,29 Determine the value in year 8 that is equivalent to the cash flows below. Use an interest rate…

A: Cash flow is the net movement of cash into or out of a business, representing its ability to meet…

Q: The present worth of all the cashflows of handmade earthen pots are shown until the end of year 8 is…

A: The present worth of the cash flow is P0=$9,330 We have to find value of x

Q: A person is planning for saving he has 10 more years of service,he would like to deposit 20% of the…

A: Given; Amount invested= 4000 Annual increase in deposit= 500 Time, n=10 years Interest rate= 15%

Q: A man buys a motor cycle. There will be no maintenance cost the first year as the motor cycle is…

A: The present value is calculated as the sum of the product of future cash flows and present value…

Q: The maintenance cost for a sewing machine after one year is expected to be P500. The cost will…

A: Given maintenance cost after 1 year = 500 P Constant increase in cost = 50 P Time = 10 years…

Q: Monty Find the accumulated present value of an investment over a 12-year period if there is a…

A: Monty Find the accumulated present value of an investment over a 12-year period if there is a…

Question

Determine the future value in the 8th year of the cash flow diagram shown if the interest
rate is 12% per year./
2
8 Year
3
4
5
7
P270
P320
P370
P420
P470
P520
P520

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

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, economics and related others by exploring similar questions and additional content below.

Similar questions

3- Determine the (P, F, A) equivalent value of the given cash-flow at 10% interest rate. 400 300 300 200 100 300 300 100 100 100 100 1 2 3 4 5 6 78 9 10 11 12 400 1000 2000 3000
Year Cash Flow S100,000 $30.000 $35.000 $5,000 S30.000 $40.000 3 4. Annual Interest rate - 5.5% a) Calculate the Present worth b) Calculate the equivalent annuity for these cash flows
A bank account pays 3% interest with monthly compounding. A series of deposits started with a deposit of $5000 on January 1, 2007. Deposits in the series were to occur each 6 months. Each deposit in the series is for $150 less than the one before it. The last deposit in the series will be due on July 1, 2021. What is the future worth of the account on July 1, 2024, if the balance was zero before the first deposit and no withdrawals are made?
4-11 The cash flows have a present value of 0. Compute the value of n, assuming a 10% interest rate. A = 2500 4 0-1-2-3-4-5-6————n n = ? F=61,307
An investment in a new handling equipment would cost $84,248 and save $20,000 per year for 5 years. What is the nominal annual interest rate earned in this investment?
A man bought an equipment costing P30000 payable in 12 quarterly payments, each installment payable at the beginning of each period. The rate of interest is 24% compounded quarterly What is the amount of each payment?
Suppose that the maintenance for a piece of equipment costs $300 EOY1 and increases by 15% every year for 5 years. The value of money is 9%. What is the equivalent present cost over the time horizon?
A man owes P12, 000 today and agrees to discharge the debt by equal payments at the beginning of each 3 months for 8 years, where this payments include all interest at 8% payable quarterly. Find the quarterly payment. Need cash flow diagram.
o. What is the present worth of a 3 years annuity payingPhp 3000 at the end of each year, with interest at 8%compounded annually? include a non-excel cash flow
Fast pls solve this question correctly in 5 min pls I will give u like for sure Svtrik An early payment of $4574.73 was accepted instead of a scheduled payment of $4850.00, allowing for interest at the rate of 8.75%. How many days early was the payment? (The answer is 251 days early but not sure how to get that answer)
A town want to replace an existing bridge that cost $5000 annually in an operation and maintenance has a remaining useful life of 20yrs. The new bridge will cost $500000 for construction and an additional $2000 for manual operation. The new bridge is expected to have a useful life of 50yrs. Thus, extending the life by 30yrs if interest rate is 8% single payment present worth of 20yrs is what?
Ahmed deposits $ 770 today, $ 1,447 in 3 years from now, and S 696 in 12 years from now. For an interest rate of 9%, calculate the present worth