Question 3Assume that 25 years ago your dad invested $200,000, plus $25,000 in years 2 through 5,and$40,000 per year from year 6 on ward. At a very good interest rate of 12% per year,determine (a) the CC value, and (b) the annual retirement amount that he can withdrawforever starting next year (year 26), if no additional investments are made.

Following is the given information: Time period =25 yearsInvested amount =$200,000From years 2 to 5,…

Answered: Question 3 Assume that 25 years ago…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An individual deposits an annual bonus into asavings account that pays 5% interest compoundedannually. The size of the bonus increases by $6,000each year, and the initial bonus amount was $30,000.Determine how much will be in the account immediately after the fifth deposit
Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual withdrawals of $2000 can be made before depleting the funds. If the first withdrawal is made in year 1 after the deposit and if the bank provides an interest rate of 5% per year, how much money should be deposited now? What if Troy decides to withdraw all that he has deposited in the bank now, 5 years later, how much money should he expect to get with an interest rate of 5%? I 2.
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7. after a lengthy meeting with the marketing team about a new product being introduced, your boss asks you to look into the project. the marketing team is estimating a 15 yer profit of $220,000 (annuity). That amount is expected to grow by an additional $25,000 (gradient) each year through year 5, level off at year five's amount through year 10, then decrease by $15,000 per year (decreasing gradient) through year 15. You determine that the initial cost of the production system will be $1,600,000. What is the PW of this project if the MARR is 25%? Enter your answer to the nearest whole dollar amount
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What is the future worth of a series of equal year end deposits of $2.800 for 13 years in a savings account that eams 10% annual interest if the following were true? (a) All deposits are made at the end of each year? (b) All deposits are made at the beginning of each year? O Click the icon to view the interest factors for discrete compounding when i 10% per year. (a) The future worth of a series of equal year-end deposits made at the end of each year is $ (Round to the nearest dollar) (b) The future worth of a series of equal year-end deposits made at the beginning of each year is $ (Round to the nearest dollar)
You want to invest an amount today that will last for 5 years and allow you to withdraw $555 at the end of each 6-month period. You earn 4% APR compounded semiannually on your investment. How much do you need to invest today to achieve your goal?
If $3000 invsted in a compound interest account for 4 years, amounts to $3612, what is the annual interest rate paid by the account? Answer =...%
Example 1.4: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 S2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of 42 $3000 per year for the following 3 years. How would the cash flow diagram appearif i 8.5% per year?, Assume the F equal $13,000 find the P(Present worth)
Apple Computer wants to have $2.1 billion available 5 years from now in order to finance initial production of a device that applies IOT technology for home use. The company expects to set aside uniformly increasing amounts of money each year to meet its goal, starting with $100 million at the end of year 1. Find present worth 1 through 5 andfind future worthat the end of year 5 using excel function. Howmuch will the constant increase, G, have to be each year at a rate of return of 18% per year? Try your skill by using the Goal Seek tool to find the required gradient. Start the evaluation with G = $50 million per year.

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