Show the steps of your calculationOFor example, question: a person deposits $500 to bank now, if the annualinterest rate is 8%, what will be the worth of this deposit after 3 years?You need to write down F = P (F/P, i, n) – 500 (F/P, 8%, 3)mem

The objective of this question is to calculate the future value of a deposit made today, given the…

Answered: Show the steps of your calculation O…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

You want to borrow $1500 at 8% and you are willing to pay $210 in simple interest.How long can you keep the money
Please use simple interest formula
Find each year saving as well!!!
QUESTION 2 1. You need $30,000 to buy a new Air-Con for your house in 4 years. What value you must have now if the compounded annually return is 10%. 2. Your father placed $50,000 in a trust fund for you. In 12 years what will be the worth of the savings. If the estimated rate of return on the trust fund is 7%?
Suppose that under the Plan of Repayment one should pay off the debt in a number of equal end-of-month installments (principal and interest). This is the customary way to pay off loans on automobiles, house mortgages, etc. A friend of yours has financed $15,000 on the purchase of a new automobile, and the annual interest rate is 6% (0.5% per month). a. Monthly payments over a 36-month loan period will be how much? b. How much interest and principal will be paid within three month of this loan?
Only typed answer
Show complete solution (please write eligibly) 1. Find the uniform annual amount that is equivalent to a uniform gradient series in which the first year’s payment is $500, the second year’s payment is $600, the third year’s payment is $700, and so on, and there are a total of 22 payments. The annual interest rate is 11%. Round answer to 2 decimal places.
4. An engineering consultant wants to withdraw $16,000 per year for each of the next 10 years to purchase hardware and software upgrades. How much money must the consultant deposit initially in an account that earns 4% interest, compounded annually?
Subject: finance
1.12 Choose the equation below that can be used to determine the value of "P" for a known interest rate, i. Hint think in gradient payment series. No need to show work on this one. Year Cash Flow, $ 0 P 1 0 2 -2,000 a) P = 10,000(P/F, i%, 5) - 2,000(P/G, i%, 5) b) P = 10,000- 1,000(P/G, i%, 5) (F/P, 1%, 5) c) P= 10,000(P/F, i%, 5) -2,000(P/G, i%, 5) d) P= -10,000(P/F, i%, 5) + 2,000(P/G, 1%, 4) 3 -4,000 4 -6,000 5 10,000
1. Assume you graduate with a student loan total of $28,000. You are going to pay off this loan with monthly payments for the next 8 years. The monthly interest rate is 0.25%. What is your monthly payment amount? (Answer is not 3,539.49)
Planning for your wedding which would take place 10 years from now, you started to deposit from today a lump sum money every quarter for 4 years at nominal interest of 8% so that you can withdraw $50,000 at your wedding day.a) Sketch the cash flow diagram for the above financial plan.b) Calculate the amount of money that has to be deposited every quarter.

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Show the steps of your calculation O For example, question: a person deposits $500 to bank now, if the annual interest rate is 8%, what will be the worth of this deposit after 3 years? You need to write down F = P (F/P, i, n) – 500 (F/P, 8%, 3) mem