Fargo to a developer who will repay the loan by selling 6 view lots at $190,000 each 2 years from how? Assume the bank will lend at a nominal 14% per year, compounded semiannually

Q: r=12% per year , compounded monthly, quarterly, seminaually, yearly , 2 years.Effective interest…

A: here we calculate the compound interest for following time interval , so calculation as follow-

Q: an order to buy a car, you borrow $30,000 from a friend at 8%/year compounded monthly for 4 years.…

A: We need to find out how much interest is in 23 payment.

Q: Bid 1: 9% per year, compounded quarterly Bid 2: 3% per quarter, compounded quarterly Bid 3: 8.8% per…

A: When compounding effects are considered, the real return on a savings account or other…

Q: Company A plans to set aside $150,000 now for possibly replacing its large synchronous refiner…

A: Future value describes the concept that a sum of money today will be worth more in the future due to…

Q: 3. Two years ago, ASARCO, Inc. invested P580,000 in a certificate of deposit that paid simple…

A: An amount was invested for simple interest two years ago. Now that accumulated amount is invested…

Q: A successful alumnus gives CBU $5,000,000 to establish an endowed scholarship fund. If CBU can…

A: Step 1: Given Value for Calculation Present Value of Payment = pv = $5,000,000Interest Rate = r =…

Q: a contractor buys an excavator for $250000 which provides an income of $35000 per year for a period…

A: Step 1: Identify the given valuesStep 2: Use the PVIFA formulaStep 3: Calculate (1 + i)^(-n)Step 4:…

Q: Mr. Doe borrowed $1000 from his bank at 8% per year, compounded annually. He can (i) repay the $1000…

A: Given, Net amount- $1000 Interest- 8% Time- 8 years

Q: You plan to deposit $100 per week into a fund that pays interest of 6% per year, compounded…

A: The rate of return on cash deposits paid by a bank or financial institution is referred to as the…

Q: 2. For the rates a through d below, what are the effective annual rates? For e, what is the…

A: The interest rate that accounts for compounding over a specific time period is called the Effective…

Q: A bank is offering an interest rate of 3.50% per year, compounded every 3 months. What is the…

A: An effective annual interest rate is the genuine profit from a bank account or any interest-paying…

Q: An Australian-based energy drink manufacturer plans to expand its international markets to the…

A: Annual Equivalent amount or the equivalent annual cost(EAC) is the cost of maintaining, operating…

Q: don't use excel only formula used.   For an interest rate of 8% per year compounded quarterly,…

A: The objective of the question is to determine the number of times interest would be compounded in…

Q: Consider the following schedule of cash flows. If interest is 4% per year, compounded continuously,…

A: here we calculate the equivalent value of the cashflow by using the given cashflow so calculation as…

Q: What is the present value of $8000 paid at the end of each of the next 16 years if the interest nate…

A: The present value of the annuity is the current value of the future payments from an annuity. The…

Cash Flow in Engineering Economics (Interest and Equivalence)

The cash flows of a firm are of two categories such as cash inflows and cash outflows. Cash inflow is the money or income entering a firm during a specific period whereas cash outflow is the money exiting a firm during a specific period in the form of the expenses incurred by the firm. In other words, we can say that cash flow is a series of expenses and credits that run over the project over the lifetime it existed whereas cash inflows are all the income and gains the company earns as a result of its operations.