A new roof will cost $9,000. It will be installed in 22 years. If the interest rate is 9% per year, how much must be saved each year to accumulate $9,000 after 22 years? N1232456789Single PaymentCompoundAmount PresentFactor Worth FactorTo Find FGiven PF/P1.09001.18811.29501.41161.5386Discrete Compounding; i = 9%CompoundAmountFactor1.67711.82801.99262.1719To Find PGiven FP/F0.91740.84170.77220.70840.64990.59630.54700.50190.4604To Find FGiven AF/A1.00002.09003.27814.57315.98477.52339.200411.028513.0210Uniform SeriesPresentWorth FactorTo Find PGiven AP/A0.91741.75912.53133.23973.88974.48595.03305.53485.9952SinkingFundFactorTo Find AGiven FA/F1.00000.47850.30510.21870.16710.13290.10870.09070.0768CapitalRecoveryFactorTo Find AGiven PA/P1.09000.56850.39510.30870.25710.22290.19870.18070.1668 9101112131415161718192021222324252.17192.36742.58042.81273.06583.34173.64253.97034.32764.71715.14175.60446.10886.65867.25797.91118.62310.46040.42240.38750.35550.32620.29920.27450.25190.23110.21200.19450.17840.16370.15020.13780.12640.116013.021015.192917.560320.140722.953426.019229.360933.003436.973741.301346.018551.160156.764562.873369.531976.789884.70095.99526.41776.80527.16077.48697.78628.06078.31268.54368.75568.95019.12859.29229.44249.58029.70669.82260.07680.06580.05690.04970.04360.03840.03410.03030.02700.02420.02170.01950.01760.01590.01440.01300.01180.16680.15580.14690.13970.13360.12840.12410.12030.11700.11420.11170.10950.10760.10590.10440.10300.1018

A sinking fund is a financial mechanism used by organizations or individuals to systematically set…

Single Payment Compound Amount Discrete Compounding; i = 9% Present Factor Worth Factor To Find P Given F To Find F Given P Compound Amount Factor To Find F Given A Uniform Series Present Worth Factor To Find P Given A Sinking Fund Factor To Find Given

Single Payment Compound Amount Discrete Compounding; i = 9% Present Factor Worth Factor To Find P Given F To Find F Given P Compound Amount Factor To Find F Given A Uniform Series Present Worth Factor To Find P Given A Sinking Fund Factor To Find Given

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A person has 80,000 in a savings account that earns interest at 7% per year, compounded annually. If…

A: Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate 80,000=12000[1-(1.075)^-time…

Q: A person buys a car for a down payment of 50,000 and a monthly payment of 35,000.00 for 9 years…

A: If the annual rate of interest is 8%, the monthly rate of interest is 8/12=23% So the present value…

Q: A company wants to reserve money now to pay for increased operating costs for the next 7 years. If…

A: Operating cost = $6,115 from 2 years to next 7 years. r = 3.5% n=7 years

Q: The annual income from a rental house is $24,000. The annual expenses are $6000. If the house can be…

A: Present value: present value of a sum that is to be received or paid in the future, discounted at an…

Q: 2. What is the future equivalent of Php400000 invested at 3% simple interest per year for 514 years?

A: Introduction Principal amount = php 400000 Interest rate = 3% = 3/100 = 0.03 Time period = 514 =…

Q: annuity makes six annual payments of 1,300 with the first payment coming today. What is the future…

A: Given six payments = 1300 First payment today = 1300 Interest rate = 8 % Future worth = Where P is…

Q: An engineer was promised to have an initial salary of 42500 and will then be increased by P500 per…

Q: What is the future value of $500,000 invested for 3 years at an interest rate of 4.5% per annum,…

A: The objective of this question is to calculate the future value of an investment of $500,000 for a…

Q: Consider an EOY geometric sequence of cash flows in which the first payment made was P2,000. This is…

A: Given First year-end payment of the geometric sequence (F1) = P2,000 Length of time interval (n)=5…

Q: A recent NYU graduate plans to save $800 a month for the next 12-years, at 7% per year, compounded…

A: Compound interest is the point at which you bring in revenue on both the cash you've saved and the…

Q: How much money would you have to deposit for 5 consecutive months starting 2 years from now if you…

A: Here we will use the formula for present value of deferred annuity due.

Q: The present equivalent of energy savings is $. (Round to the nearest dollar.) Is the cost of the…

A: Present equivalent also known as present value refers to the current value of a future sum of money…

Q: You are to pay a bill every month for 5 years. The accumulated amount of the payment you paid is 60k…

A: Answer in step 2

Q: If you have a loan of 140,000 at 9% per year over 20 years and you repay the loan every month for…

A: A loan is a sum of money that is borrowed from a lender with the agreement to repay it, usually with…

Q: A used car dealer tells you that if you put $2,500 down on a particular car your payments will be $…

A: Here we calculate the cost of the car after down payment and nominal interest so the calculation of…

Q: If you invest 600 at year zero, then that same amount more every subsequent year, letting it…

A: The future value of an annuity is a financial concept that represents the total value of a series of…

Q: Leon and Heidi decided to invest $2500annually for only the first nine years of their marriage. The…

A: A sum's present value (PV) after it has increased with compound interest for a predetermined number…

Q: asphalt road requires no upkeep until the end of 3 years when P70,000 will be needed for repairs.…

A: Clear solution given below,

Q: At 10.23% annual interest compounded semiannually, how long in years will it take to become a…

A: Compound interest is the interest calculated on the initial principal as well as on the accumulated…

Q: A man wishes to have 30,000 when he retires 16 years from now. If he can expect to receive 4% annual…

A: Step 1: Given Value for Calculation Future Value = fv = 30,000Number of Payment = n = 16Interest…

Q: What is the present equivalent value

A: Given the weekly balance deposit is $ 359. Time period (t) given is 5 years. APR (rate of…

Q: Assume that 100 Apples cost 100 Liras Today. You have Invested your 500 TL with 1,5% monthly rate of…

A: Future value = present value*(1 + rate of interest)^number of years

Q: A retail outlet is being designed in a strip mall in Nebraska. For this outlet, the installed…

A: NPV is a capital budgeting technique used to find the acceptability and profitability of a project.…

Q: Calculate the future value of an annuity of $400 invested every year at 6.6% co. continuously for 5…

A: Amount invested each year = 400 Time = 5 years Interest rate = 6.6 % compounded continuously…

Q: A man buys a car for $33,000 with no money down. He pays for the car in 48 equal monthly payments…

A: The formula to estimate Compound Interest is: A=P(1+rn)nt where A= Amount; P= Principle Amount r=…

Q: What is value of $475 at interest rate of 3.7% after 15 years?

A: The data presented in the question above is:- Principal amount = $475 Interest rate = 3.7% Time…

Q: The maintenance cost of a machine this year is expected to be P500. The cost will increase P150 each…

A: Maintenance cost: It refers to the expenses done by the individuals or the business to keep their…

Q: If P 10,000 is deposited each year for 9 years, how much annuity can a person get annually from the…

A: In this question, there are two cash flows, One cash flow is when P10,000 is deposited each year-end…

Q: Jesus Rangcasajo deposited $2000 in a savings account when his sonwas born. The nominal interest…

A: Continuous compounding means that compounding on interest occurs on each second, minutes and hour.…

Q: For an investment of$800 every 6 months at 6.2%/a compounded semi-annually for 20 years, what is the…

A: To calculate the value of the investment after 20 years, We can use the formula for the future…

Q: What is the present worth of cash flows that begin at $15,000 and increase at 8% per year for 10…

A: In a formal financial context, the Present Worth (PV) of a Cash Flow is a single, current dollar…

Q: 3,29 Determine the value in year 8 that is equivalent to the cash flows below. Use an interest rate…

A: Cash flow is the net movement of cash into or out of a business, representing its ability to meet…

Q: What is the ammount of interest earned on $10,000 for 12 years at 9% simple interest per year?

A: Simple interest is a method to calculate the amount of interest charged on a sum at a given rate and…

Q: The first-year maintenance cost for a new automobile is estimated to be $100, and it increases at a…

A: Given; First-year maintenance cost= $100 Uniform increasing rate= 10% Interest rate; r= 8% Years; n=…

Q: A man buys a motor cycle. There will be no maintenance cost the first year as the motor cycle is…

A: The present value is calculated as the sum of the product of future cash flows and present value…

Q: The highway department has purchased a piece of equipment that will require annual maintenance. In…

A: The problem is asking us to calculate the present worth of the maintenance cost for a piece of…

Q: Calculate the annual force of interest which is equivalent to an effective rate of interest of 2.2%…

A: Calculate the annual force of interest which is equivalent to an effective rate of interest of 2.2%…

Q: if money is worth 6% annually, what annual payment is required to raise 17,909 after 5 years of…

Q: If $3000 invsted in a compound interest account for 4 years, amounts to $3612, what is the annual…

A: Given, P+I = A = 3612 P = 3000 n = time = 4 years Compound interest Rate = r = ??

Q: If you are able to save $4400 in year 1, and amounts increase by 2.6% each year through year 19 at…

A: Saving in the first year is $4400The annual increment rate in savings is 2.6%. Saving is made up to…

Q: A couple borrowed from a lending company an amount of P 4,000 for 6 years at 12%. At the end of 6…

A: Given Inital loan amount = P4000 of 6 year at 12% compound interest After 6 year, they have taken…

Question

A new roof will cost $9,000. It will be installed in 22 years. If the interest rate is 9% per year, how much must be saved each year to accumulate $9,000 after 22 years?

N
1
23
2
456789
Single Payment
Compound
Amount Present
Factor Worth Factor
To Find F
Given P
F/P
1.0900
1.1881
1.2950
1.4116
1.5386
Discrete Compounding; i = 9%
Compound
Amount
Factor
1.6771
1.8280
1.9926
2.1719
To Find P
Given F
P/F
0.9174
0.8417
0.7722
0.7084
0.6499
0.5963
0.5470
0.5019
0.4604
To Find F
Given A
F/A
1.0000
2.0900
3.2781
4.5731
5.9847
7.5233
9.2004
11.0285
13.0210
Uniform Series
Present
Worth Factor
To Find P
Given A
P/A
0.9174
1.7591
2.5313
3.2397
3.8897
4.4859
5.0330
5.5348
5.9952
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4785
0.3051
0.2187
0.1671
0.1329
0.1087
0.0907
0.0768
Capital
Recovery
Factor
To Find A
Given P
A/P
1.0900
0.5685
0.3951
0.3087
0.2571
0.2229
0.1987
0.1807
0.1668

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
2.1719
2.3674
2.5804
2.8127
3.0658
3.3417
3.6425
3.9703
4.3276
4.7171
5.1417
5.6044
6.1088
6.6586
7.2579
7.9111
8.6231
0.4604
0.4224
0.3875
0.3555
0.3262
0.2992
0.2745
0.2519
0.2311
0.2120
0.1945
0.1784
0.1637
0.1502
0.1378
0.1264
0.1160
13.0210
15.1929
17.5603
20.1407
22.9534
26.0192
29.3609
33.0034
36.9737
41.3013
46.0185
51.1601
56.7645
62.8733
69.5319
76.7898
84.7009
5.9952
6.4177
6.8052
7.1607
7.4869
7.7862
8.0607
8.3126
8.5436
8.7556
8.9501
9.1285
9.2922
9.4424
9.5802
9.7066
9.8226
0.0768
0.0658
0.0569
0.0497
0.0436
0.0384
0.0341
0.0303
0.0270
0.0242
0.0217
0.0195
0.0176
0.0159
0.0144
0.0130
0.0118
0.1668
0.1558
0.1469
0.1397
0.1336
0.1284
0.1241
0.1203
0.1170
0.1142
0.1117
0.1095
0.1076
0.1059
0.1044
0.1030
0.1018

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Sinking fund

VIEW

Step 2: Find the annual savings required

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A young man has decided to go into business at the age 40. He wishes to accumulate P 200,000.00 at that age. On his twenty-fifth birthday he deposits a certain amount and will increase the deposit by 10% each year until the fortieth year. If the funds can be invested at 9.6% compounded annually, how much should his initial investment be?
How much interest would Princess Ybañez will be paid each year on a loan of $2000 at an annual interest of 8%? How much interest would she have beenpaidover an 8-year period?
What is the present value of $100 a year from now if the interst rate is 5%?
The AMC charges for a water purifier costs Rs. 2500 per year starting now. The AMC costs increase by Rs. 100 each year. The purchaser skips the AMC in the 3rd year. For a period of 8 years, calculate the equivalent annual series. Assume an interest rate of 8%.
A man borrowed P100,000 with 20% interest promised to pay the amount annually for 10 years however after the 6th deposit was made, he is in the position to pay the remaining balance. What amount should he pay?
Your local department store offers a credit card charging “only .05% interest per day!”What is the effective yearly interest rate?
You would like to have $20,500 for future in three years from now. How much should you deposit your bank account now if the account pays in you 4% per quarter
A man borrowed P 80,000 and promised to pay the amount after 8 months with 12% interest. What is the future amount(P)?
How much must be invested on January 1, 1998 in order to accumulate P2,000 on January 1, 2003? Money worth 6%.
The incomes for a business for 5 years are as follows: $8250, $12,600, $9,750, $11,400, and $14,500. If the value of money is 8%, what is the equivalent uniform annual benefit for the 5-year period?
Solve all A 40-year-old Ministry of Finance officer is planning to save money for retirement. He intends to deposit 5% of his salary. 1. In the present year, he deposited 600,000 baht from his salary, and after this he intends to deposit another 50,000 baht a year every year from year 1 to year 10. At the end of 10 years, how much will he have in the account with the interest rate of 6% per year? 2. If he changes his mind to start saving at the age of 45, how much will he have to deposit with the same amount per year in order to get the equal equivalent amount as the amount received from the first form of 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.