At the beginning of August, you decide to buy a 65” TV which costs $2000. You don’t need it until the beginning of February for a Superbowl party you are hosting; so, you decide to put the TV on layaway. For layaway, you have to pay an initial service fee of $15 along with 10% of the cost of the item. After placing the TV in layaway, you pay off the remaining cost of the TV in 26 weeks. If the annual interest rate is 15% compounded weekly (assume 52 weeks in a year), how much are your weekly installments? How much did you pay overall using the layaway program? Simple Interest CalculationsCash Flow DiagramNameFormulaI = Pniinterest earned over n periodsfuture value related to presentF = P(1+ ni)din>value3lender loans P and collects F after 5 periodsCoubpresent value related to future1+ nivalueCompound Interest CalculationsCash Flow DiagramFormulaNamefuture value related to presentF = P(1 + i)"value235lender loans Pand collects Fafter 5 periodscoubpresent value related to futurevalueP = F(1+ i)¯"A[(1 + i)"F = Afuture value accumulated due to n4periodic deposits of amount ACoubperson saves A for 5 periods

Given data: The cost of the 56” TV is $2000. Initial service fee is $15 + 10% of the cost of the…

Answered: Simple Interest Calculations Cash Flow…

Introduction to Chemical Engineering Thermodynamics

8th Edition

ISBN:9781259696527

Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart

Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart

Chapter1: Introduction

Section: Chapter Questions

Problem 1.1P

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At the beginning of August, you decide to buy a 65” TV which costs $2000. You don’t need it until the beginning of February for a Superbowl party you are hosting; so, you decide to put the TV on layaway. For layaway, you have to pay an initial service fee of $15 along with 10% of the cost of the item. After placing the TV in layaway, you pay off the remaining cost of the TV in 26 weeks. If the annual interest rate is 15% compounded weekly (assume 52 weeks in a year), how much are your weekly installments? How much did you pay overall using the layaway program?

Simple Interest Calculations
Cash Flow Diagram
Name
Formula
I = Pni
interest earned over n periods
future value related to present
F = P(1+ ni)
din>
value
3
lender loans P and collects F after 5 periods
Coub
present value related to future
1+ ni
value
Compound Interest Calculations
Cash Flow Diagram
Formula
Name
future value related to present
F = P(1 + i)"
value
2
3
5
lender loans Pand collects Fafter 5 periods
coub
present value related to future
value
P = F(1+ i)¯"
A
[(1 + i)"
F = A
future value accumulated due to n
4
periodic deposits of amount A
Coub
person saves A for 5 periods
<in
[(1 + i)" – 1]
P = A
present value related to n future
deposits of A
2
3
5
i(1 + i)"
coub
lender loans Pand collects A over 5 periods as repayment

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