Jay is now 13 years old, residing in San Diego. By the age of 18, he aspires to enroll in a 4-year industrial engineering program at MIT in Cambridge, Massachusetts. He plans to visit his family back in San Diego once every summer at the end of each academic year then. It is anticipated that the cost of roundtrip airfare tickets is $420 in his first year at MIT, then rising by 5% each year thereafter until he graduates. He wants to save in advance for the cost of the airfare tickets. Starting a year from now, Jay plans to make only four (4) consecutive uniform deposits into a Citibank savings account that earns 8% interest per year. Calculate the amount of the yearly deposits that he has to make in order to cover (well in advance) in advance the entire cost of the 4 roundtrip airfare tickets while at MIT.

Jay is now 13 years old, residing in San Diego. By the age of 18, he aspires to enroll in a 4-year industrial engineering program at MIT in Cambridge, Massachusetts. He plans to visit his family back in San Diego once every summer at the end of each academic year then. It is anticipated that the cost of roundtrip airfare tickets is $420 in his first year at MIT, then rising by 5% each year thereafter until he graduates. He wants to save in advance for the cost of the airfare tickets. Starting a year from now, Jay plans to make only four (4) consecutive uniform deposits into a Citibank savings account that earns 8% interest per year. Calculate the amount of the yearly deposits that he has to make in order to cover (well in advance) in advance the entire cost of the 4 roundtrip airfare tickets while at MIT.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

ENGINEERING ECONOMY UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS LEGIBLE. FOLLOW THE INSTRUCTIONS CAREFULLY. Draw CASH FLOW DIAGRAMS for the GIVEN AND REQUIRED/FIND. Begins the solutions by writing the equations/formulas. Use 2 decimal places and Box the final answer. Five friends plan to establish a consulting firm after 5 years. The plan is for each to make semi-annual deposits of P15,000 in their respective bank accounts starting at the end of the first semester after the agreement up to the 5th year. All deposits are to be made every end of the periods. One of them is not capable of starting at the same time with everyone because of a present obligation but promised to start her deposits by the end of the first semester after the second year until the 5th year. How much should she deposit in equal amounts to save as much as each of her friends if money is worth 14% compounded semi-annually?
Engineering Economy Q2 G A company borrows $100,000 today at 12% nominal annual interest compounded monthly. Find the monthly payment of a 5-year loan.
1
Engineering Economics
(engineering economic) How much is the monthly installment for a year when borrowing $1000 with an Effective Annual Interest Rate of 18%, stacked every 3 months?
Engineering Economics 2-) We have a five-year contract, compounded quarterly, at a rate of 16% per year. $12 million per quarter. What is the present value of the contract?
(engineering economic) What is the effective annual interest compounded each month if a $1000 loan had to be paid back $100/month for one year?
3. TOPIC: ENGINEERING ECONOMICS PLEASE ANSWER IN 4 DECIMAL POINTS
plz solve both parts within 30-40 mins I'll give you multiple upvote
10
Just c d and e please