Answered: The annual worth of investing $50,000…

The annual worth of investing $50,000 now and $20,000 per year starting in year 16 and continuing forever at 12% per year is closest to: - 8,400 - 4200 - 9655 8650 O O

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: Determine the amount of money that you could accumulate by the end of year 12 from deposits of $1000…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: A civil engineer planning for her retirement places 9% of her salary each year into a…

A: A civil engineer has a salary of $190,000 at the end of year 1 and expects it to grow by 2% each…

Q: Jones plans to deposit $500 at the end of each month for 10 years at 12% annual interest, compounded…

A: Given that, Jones plans to deposit $500 at the end of each month for 10 years at 12% annual…

Q: The table below demonstrates the total utility Terrence derives from eating different quantities of…

A: Total utility is the total satisfaction that a consumer gets on consuming a good or service, whereas…

Q: Calculate the present worth of 19 uniform payments of $10,800 that begin 1 year from now at an…

A: Answer..

Q: Company A plans to set aside $150,000 now for possibly replacing its large synchronous refiner…

A: Future value describes the concept that a sum of money today will be worth more in the future due to…

Q: Automationdirect, which makes 6-inch TFT color touch screen HMI panels, is examining its cash flow…

A: Expenditure two years from now is $7,000 Expenditure four years from now is $9,000 Expenditure five…

Q: A company has invested 2 million dollars 4 years ago in high yield junk bonds. if the bonds are now…

A: Given: Amount invested=$2 million Present value of bonds=$2.8 million Time=4 years To find: Rate of…

Q: Discuss the firms objective it's constraints and how it makes choices in its role as a buyer of…

Q: The more days you work, the more tedious your job becomes and the more fun you miss out on. So your…

A: In the question, psychological cost of working is given. And also the amount that the job pays. Now,…

Q: commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive…

A: A bank is a financial institution that provides various financial services to individuals,…

Q: Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp.…

A: "Operating cost per machine is $26,000 per year for the first two years after that, it increases by…

Q: Erbitux is a colorectal cancer treatment drug that is manufactured by ImClone Systems, Inc. If the…

A: The treatment for a cancer is necessary and the amount of the which is to be paid can be taken out…

Q: Calculate the present worth of 9 uniform payments of $8,400 that begin 1 year from now at an…

A: Present worth implies, in the event of a Financial Offer containing Financial Consideration…

Q: do fast no chatgpt answer only typing answer no use excel i will 5 upvotes. An interest rate of 4%…

A: To find the effective semiannual rate closest to a quarterly rate of 4% compounded continuously, we…

Q: Bodine Electric makes gear motors with a threestage, selectively hardened gearing cluster that is…

A: Amount borrowed, P = $20,000,000 Rate of interest = 10% Number of installments, n = 6 We know that,…

Q: Alex, an engineering graduate, who is planning for early retirement 20 years from now. He believes…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Question

The annual worth of investing $50,000 now and $20,000 per year starting
in year 16 and continuing forever at 12% per year is closest to:
- 8,400
- 4200
- 9655
- 8650
O - 10,655
O -28000
O O O O O O

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

VIEW

Step 2

VIEW

Step by step

Solved in 2 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

Receipts from sales of hardened steel connectors was $50,000 in the first quarter, $51,000 in the second, and amounts increasing by $1000 per quarter through year 4. What is the equivalent uniform amount per quarter if the interest rate is 3% per quarter?
What is the future worth of the following cash flows at month 18: $16000 in month 1, S16640 in month 2, and amounts increasing by $640 per month through month 12 (i.e., 12 cash flows), if the interest rate is 23.7631528% per year, compounded continuously?
A company wants to start a recapitalization pool for replacement of network servers. If the company invests $5000 at the end of year 1 and increases the amount invested by 5% each year, how much will be in the account 5 years from now? Interest is earned at a rate of 8% per year. Northrop Grumman will purchase a new automated 3D printer for a component it manufactures. The printer vendor requires no payment upon delivery of the printer, but requires annual payments of $5,000 that will start three years from now (in year 3) and continue through year 6. Northrop Grumman would like to set aside today an amount of money to cover the future annual payments. How much should they set aside now if the interest rate is 10%? Aerojet Rocketdyne is providing an annual maintenance contract to one of its customers. The contract will begin five years from now after the warranty period is over. The customer will pay $5,000 in year 5, with that amount increasing by 3% per year in years 6-10 (a…
The Nicor family is planning to purchase a new home 3 years from now. If they have $240,000 now, how much will be available 3 years from now? The fund grows at a compound rate of 12% per year.
A commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive area of the city. The developer plans to get a loan that will be repaid with uniform payments of $400,000 beginning in year 2 and ending in year 16. How much will a bank be willing to loan at an interest rate of 5% per year? The bank will be willing to loan the developer a sum of $
The by-product department of Iowa Beef has the revenue stream shown. If the interest rate is an effective 12% per year compounded continuously, determine the annual worth of the revenues for years 1 through 5.
Combining Factors and Spreadsheet Functions 3.36 For the cash flows shown, determine the present worth in year 0, if the interest rate is 12% per year. Year Cash Flow, $ 12 3 4 5 6 7 8 9 10 13 13 13 13 16 19 22 25 28 31
Today, an engineer deposited $10,000 into an account that pays interest at 8% per year compounded semiannually. If there is no interperiod compounding and withdrawals of $1000 in months 2, and 23 are already planned, what will be the future value at the end of 3 years? The future value would be $
Eight energy corporations made plans to increase their combined spending on efficiency programs to $50 million per year for the next 8 years as a response to global warming initiatives set by the government. What is the future worth of total investments at the end of 8 years at an interest rate of 8% per year?
A UTEP engineering student and her husband operate a pet sitting service to help make ends meet. They want to add a daily service of a photo placed online for pet owners who are traveling. The estimates are equipment and setup cost $750; net monthly income over costs $90. Over a period of 3 years, will the service make at least 12% per year compounded monthly? Note: Interest rate of 12% per year compounded monthly is 1% per month. 30,1075 36 ONTH>
A man bought a Ford vintage car for Php 552001 on installment basis at the rate of 12% per year compounded annually on the unpaid balance. If he paid a down payment of Php 108130 in cash and proposes to pay the balance in 22 quarterly payments, what should this payment be?
For the cash flows, determine the present worth USING EXCEL EQUATIONS AND SPREADSHEET in year 0 at an interest rate of 6% per year compounded monthly. Year Cost($1000) 0 $300 1 $275 2 $250 3 $225 4 $200 5 $175