Answered: Use the given formula in solving the…

Use the given formula in solving the equation In the diagram, what is the value of K on the left-hand cash-flow diagram that is equivalent to the right-hand cash-flow diagram? Let i = 12.12% per year

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: Please try to solve it in 20 minute How much money would you pay in interest if you borrowed $1,600…

A: Compound Interest - It is the interest which is charged over principal and also charged in addition…

Q: None

A: The objective of the question is to calculate the present worth of the investment at two different…

Q: The Interest rate of 18% per year compounded monthly, the effective interest rate semiannually is…

A: Interest rate compounded monthly=18% per yearMonthly interest rate=1812=1.5%

Q: If you deposit $9,000 now, and you withdraw it after six years at 9% annual interest, what is the…

A: In this question 1st we calculate the value of $9000 at end of 2nd year afterward on that value we…

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: A young man has decided to go into a business at age 40. He wishes to accumulate P200,000 at that…

A: Given, Future value FV = P 200,000 Growth rate g = 10%Interest rate r = 9.6%

Q: The present value of a sum of money is the amount that must be invested now, at a given rate of…

A: P = F(1+rn)ntwhere P is present worth F is Future worth n is compounding period t is time period In…

Q: An annuity of P2,000 is to be paid in 4 years at the rate of 10% compounded continuously. What is…

A: Present Worth of an annuity formula PW =PMT1-1(1+r)nr where PW is the present worthPMT is a…

Q: Josh and Ann are saving up for their daughter’s college education. Seventeen years from today, they…

A: Cash flow is the development of cash all through an organization. Cash got implies inflows, and cash…

Q: How much money should be deposited each year for 6 years starting 1 year from today, if you wish to…

A: Cash flow is the net balance of money coming into and going out of a firm at a particular moment in…

Q: or the cash flow revenues shown below, find the value of G that makes the equivalent annual worth in…

A: Given: Annual equivalent worth=$500 Interest rate (i)=10% per year Gradient=G Number of years(n)=7

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: How much should be deposited now at 8% compounded annually to take care of the maintenance of a…

A: According to the question above, Rate of Interest (r) = 8% = 0.08 Amount = P 100,000 Time(t) = 6…

Q: Cardo Dalisay deposited P1,000, P1,500, and P2,000 at the end of the 2nd year, 3rd year, and 4th…

A: Uniform Gradient Cashflows is defined as the kind of cashflows where the change occurs by the same…

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: Major overhaul expenses of $5000 each are anticipated for a large piece of equipment. The expenses…

A: Net present value is the present value of the cash flows at the required rate of return of the…

Q: For the cash flows given below, determine the value of G that makes the present worth in year 0…

A: Present value(PV) is that value of an amount(A) of money that is worth today. It is less than the…

Q: 2.6) What is the present worth of an expenditure of $25,000 in year 8 if the interest rate is 10%…

A: Present worth, also known as present value, is a financial concept that refers to the current value…

Q: Pls do fast

A: A1 = $1500 n1 = 6 years In year 9 - OTD - $3500 In year 11 - OTW - $2500 From year 12: A2 = ? n2 =…

Q: . If you deposit $1000 per month into an investment account that pays interest at a rate of 6% per…

A: Compound interest defines the interest calculated on both the initial principal and the accumulated…

Q: If P10,000 is deposited each year for 9 years, how much annuity can a person get semi-annually from…

A: Given Data, · Cost of money (Interest rate) = 14% = 14/100 = 0.14 · Type of compounding = quarterly…

Q: A recent government study reported that a college degree is worth an extra Php 35947 per quarter…

A: Given , Extra Income quarterly = 35947 Interest rate = 6% Quarterly interest rate = 6%/4 = 1.5%…

Q: 1.20 At an interest rate of 8% per year, $50,000 one year hence is equivalent to how much now?

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: How much do you need to deposit today into an account that pays 3% per year so that you can make 10…

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

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: On her recent birthday, April 22, 2001, Nicole was given by her mother a certain sum of money as…

A: Given, Nicole recieved a certain amount on her birthday on 22nd April, 2001She invested the amount…

Q: 4. Find the future worth in year 10 of an investment that starts at P8000 in year 1. The interest…

A: Present value PV of the investment = P8000 Rate of interest (r) = 10% time (n)= 10 years

Q: Ramoncito borrowed P100,000.00 on October 31, 2019 from Barboncito and the loan has an interest rate…

A: Present value = 100,000 on October 21, 2019 interest rate = 6% per year Time = 1 day in October +…

Q: A recent government study reported that a college degree is worth an extra Php 35680 per quarter…

A: Given, i = 6% i.e 0.06 n = 40 years Extra amout per quarter = Php 35680

Q: starting with

A: Given : Future Value=$2.10 billion or $2100 million Uniform increase in amounts of money each…

Q: An electronic device is available that will reduce this year's labor cost by$13232.The equipment is…

A: When referring to interest compounding, which is calculated twice per month, the term "compounded…

Q: A guy deposited P4,000, P4,500 and P5,000 at the end of the 2nd year, 3rd year and 4th year,…

A: We have given that rate of interest i=0.07 or 7% We have to find the value of A

Q: The maintenance cost of a certain equipment is P40,000 per year for the first 5 years, P60.000 per…

A: Given the information: Interest rate = 6% Maintenance cost per year till 5th year = P40000…

Q: 2. For the rates a through d below, what are the effective annual rates? For e, what is the…

A: The interest rate that accounts for compounding over a specific time period is called the Effective…

Q: A new oven wil save $150 per year in electricity expense How much can we afford to pay for this oven…

A: Here the $150 expense is saved by oven each year and oven life is 12 years . It is equivalent as…

Q: A person wishes to accumulate $4,500 over a period of 15 years so that a cash payment can be made…

A: Engineering economics is a branch of economics that applies economic principles to engineering…

Q: An energy company wants to have $ 3.1 billion available 6 years from now to finance the production…

A: We need to find the value of G

Q: 135 TAA 900 900 900 10 0 2 4 1200 1500 1800 2100 On the cash flow diagrams above, the x-axis shows…

A: The following formula is used to calculate present value factors (PVF): PVF = 1/(1+i)n

Q: Alexandr makes 15 equal annual deposits of $1,000 each in a bank account paying 5% interest. How…

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

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: A=? [[i:UU - IU 350 300 2 3 4 5 1 6 7 1 4

A: Gradient formula takes the note of change or gradient in cash flow. The change in net payments from…

Q: 3. If you borrow $24,000 now at an interest rate of 10% per year and promise to repay the loan with…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Question

Show solution

Use the given formula in solving the equation

In the diagram, what is the value of K on the left-hand cash-flow diagram that is equivalent to the right-hand cash-flow diagram? Let i = 12.12% per year.

P = G (P/G, i%, n)
F = G (F/G, i%, n)
A = G (A/G, i%, n)
Gr1-(1+i)-n
i
P = [ ²¹
i
F = G [(¹+i)” −1 −n]
i
A = G₁₁-
n
(1+i)n
-
n
(1+i)n-1

0
1
+
2
3
End of Year
K
K
4 5
I
0
+
1
100
2
210
320
3
4
End of Year
430
5
540
650
6 7

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: Determine the given variables

VIEW

Step 2: Determine the present value of right hand side cash flow:

VIEW

Step 3: Determine the PW of left hand side cash flow:

VIEW

Solution

VIEW

Step by step

Solved in 4 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

from Ramoncito borrowed P100,000.00 on October 31, 2019 Barboncito and the loan has an interest rate of 6 % per year until full payment. How much should Ramoncito pay Barboncito on March 10, 2020 in order to fully satisfy the obligation?
2. Find the present worth in year 0 (PT) for the cash flow diagram using an interest rate of 10% per year. PT=? i=10% Actual year Upp= 4 5 7 6 1 3 4 5 6 Series year A=$4000 $2000 PA=? 89
For the cash fl ow diagram shown, solve for F ,using an interest rate of 1% per month.
At a simple interest rate of 13% per year, determine how long will it take $7,500 to increase to 4 times as much. Compare the time it will take to double if the rate is 20% per year simple interest At an interest rate of 13%, it will take __ years for the amount to increase 4 times as much. It will take __ years for the amount to double at an interest rate of 20%.
geometric handwritten solution
Please answer correct please both are
ANSWER THE FOLLOWING QUESTION A pharma company uses spectrophotometers to analyze the concentration of products. One of the spectrophotometer need to be replaced which will cost the company $51667 five years from now. The pharma company has decided to keep a fixed amount of funds every year to cover the spectrophotometer charges. Calculate the amount the company needs to set aside each year beginning 1 year from now. Provided rate of return equal to 15% per year. Solve by using formulas (the use of tables is not allowed)
A man borrowed P300,000 from a lending institution which will be paid after 10 years at an interest rate of 12% compounded annually. If money is worth 8% per annum how much should be deposit to a bank monthly in order to discharge his debt 10 years hence?
Mr. John Do borrowed P 1,000 and was able to sign a promissory note that he would pay P 2,032.79 after 4 years. What is the effective rate of interest if money is compounded bi - monthly( once every 2 months )?
hand written sol
Solve it correctly please. I will rate with 2-3 votes.
If $3000 invsted in a compound interest account for 4 years, amounts to $3612, what is the annual interest rate paid by the account? Answer =...%