The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $625,000. If the gradient increase eachyear, G, is $3,000, determine the cash flow in year 1 at an interest rate of 10.00% per year. (Round the final answer to three decimalplaces.)The cash flow in year 1 is $|

To find the cash flow in year 1 of an arithmetic gradient series, we use the formula for the future…

Answered: The future worth in year 10 of an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How much money should be deposited annually in a bank account for five years if you wish to withdraw $3,000 each year for three years, beginning five years after the last deposit? The interest rate is 4% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 4% per year. The annual deposit amount should equal $ per year. (Round to the nearest dollar.) C
Suppose you start saving for retirement when you are 30 years old. You invest $5,000 the first year and increase this amount by 2% each year to match inflation for a total of 15 years. The interest rate is 7% per year. How much money will you have saved when you are 45 years old? Click the icon to view the interest and annuity table for discrete compounding when i = 2% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 7% per year. When you are 45 years old, you will have saved $ (Round to the nearest dollar.)
Leon and Heidi decided to invest $2,500 annually for only the first eight years of their marriage. The first payment was made at age 20. If the annual interest rate is 8%, how much accumulated interest and principal will they have at age 65? Click the icon to view the interest and annuity table for discrete compounding when i = 8% per year. The accumulated interest and principal will equal $ (Round to the nearest dollar.)
What rate of interest compounded annually would result in receipt of $28,530 in eight years from an investment of $10,000 made now? The rate of interest is % per year. (Round to the nearest whole number.)
PROVIDE THE CASH FLOW DIAGRAM ONLY. Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one is $5,000 and f = 6% per year thereafter. Find the equivalent uniform gradient amount over the same period if the initial value of the cash flows at the end of year one is $4,000. Complete the following questions to determine the value of the gradient amount, G. The interest rate is 8% per year.
If the sum of Php 15,000 is deposited in an account earning interest at the rate of 12% compounded semiannually, what will it become at the end of 5 years? (Answer is in Php.)
K How much money should be deposited annually in a bank account for five years if you wish to withdraw $6,000 each year for three years, beginning five years after the last deposit? The interest rate is 2% per year. Click the icon to view the interest and annuity table for discrete compounding when i=2% per year. The annual deposit amount should equal $ per year. (Round to the nearest dollar.)
The Stafford plan now offers student loans at 4% annual interest. After two years the interest rate will increase to 7% per year. If you borrow $5,500 now and $5,500 each year thereafter for a total of four installments of $5,500 each, how much will you owe at the end of year 4? Interest is computed at the end of each year. Click the icon to view the interest and annuity table for discrete compounding when i= 4% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. At the end of year 4 you will owe (Round to the nearest dollar.)
Albert Einstein once noted that “compounding of interest is one of humanity’s greatest inventions.” To illustrate the mind-boggling effects of compounding, suppose $100 is invested at the end of each year for 25 years at i = 50% per year. In this case, the accumulated sum is $5,050,000! Now it is your turn. What amount is accumulated after 25 years if the interest rate is 30% per year?
You borrow $20,000 to purchase a car and will repay the loan in uniform monthly payments for the next 48 months. The first payment is due one month after the purchase of the car. If the interest rate is 1% per month, determine the amount of your monthly car payment. Assuming you make each payment as scheduled, how much total interest will you pay over the four-year period?
Lindsey plans to deposit her annual bonus into a savings account that pays 3% interest compounded annually. The size of her bonus increases by $1000 each year, and the initial bonus amount she will deposit at the end of year 1 is $2,500. a) Determine how much will be in the account immediately after the 6th deposit. b) What's the future value if she only plans to deposit her annual bonus for 8 years (the last deposit is at the end of year 8)? c) What's the future value if she only plans to deposit her annual bonus for 8 years (the last deposit is at the end of year 8), but also plans to skip the deposits at the end of years 3 and 6?
Your sister needs money and comes to you with a deal. She asks you to pay $2,000 at the end the first year, then increasing by $500 every year til the 20th year. Then, for the next 20 years, she will pay you back twice the amount you paid for each of your annual payments, starting the next year right after you pay your last payment. Thus, you receive $4,000 at the end of year 21 and $5,000 at the end of next year and so on. Your sister claims it is beneficial for you to accept this deal since you are getting back twice the amount you let her borrow. Draw the Cash Flow Diagram What is the interest rate that makes you just indifferent between accepting or rejecting her deal? Assume your 1) your TVOM is 5%, 2) you decided to lend the amount asked by your sister. How many times of your original payment should you ask her for (Currently she's giving you back double the amount you paid) if you want to earn $25,000 profit now? First calculate the present worth of the given cash flow at time…

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