Answered: What nominal interest rate per month is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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C. Patrick forecasts that interest rates will rise over a 5-year period according to a force of interest function given by 8 = 0.08 + 0.025t t+1' 0 ≤ t ≤ 5. (a) According to this scheme, what is the equivalent annual compound effective rate for the 5-year period? (b) What are the equivalent effective annual rates for each of years 1,2,3,4, and 5? (c) What is the present value at t = 2 of P 100,000 due at t = 4?
A company is planning to replace single-use plastic packaging to sustainable ones. This replacement process will cost the company $50,000 three years from now. How much money must the company set aside each year beginning now (year 0) in order to have the total amount available immediately after making the last deposit at the end of year 3? Assume the company can invest its funds at 15% per year. a. $10150 O b. $10015 O c. $10000 O d. $10500
Please use hand written equations to answer.
7) For the cash flows shown in the diagram, find the future worth at end of year 10 at interest rate of 10% per year. 0 $1,000 ♥ 1 2 3 4 5 6 $2,000 7 8 9 10
2. If a Plastics company purchases a new building now for $1.3 million for its corporate headquarters, what must the building be worth in 10 years? The company expects all expenditures to earn a rate of return at least 18% per year.
Typed plzzz And Asap
5. The GAP company has some of its jeans manufactured under a contract with an independent clothing designer; JSC Inc. If JSC operating cost is $35,000 per year in years 1 – 2, but then expenses increase by 9% per year through year 8. a. Draw and label the cash flow diagram b. What is the present worth of this operating cost model at year 0 assuming an interest rate of 15% per year?
what is the answer in 2 decimal places
question a ,b and c please
am. 112.
For the given cash flow of geometric gradient, if A= $5,000 , the present value, P is closest to:
2. A company wishes to establish a fund to cover the maintenance of a machine for its lifetime of 12 years. The maintenance charges are paid at the end of each year of service and are estimated to be $1000 the first year and increase by $100 in each subsequent year. How much money must be invested at the beginning of the first year to pay for the maintenance costs if the interest rate is 4% per year?

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What nominal interest rate per month is equivalent to an effective rate of 3.6% per quarter compounded continuously? Select the correct response: A. 8.11% B. 0.81% C. 1.81%