You are going to save $200 each month for three years so that you can put a down payment on a new car. If the monthly compound interest rate on your account is 0.25%, what is the largest down payment you can make at the end of three years (immediately after the last deposit)?
You are going to save $200 each month for three years so that you can put a down payment on a new car. If the monthly compound interest rate on your account is 0.25%, what is the largest down payment you can make at the end of three years (immediately after the last deposit)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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please explain so I can understand. Engineering Econ

Transcribed Image Text:TABLE C-1 Discrete Compounding; i = 1/4%
Single Payment
Compound Present
Amount
Factor
Worth
Factor
N
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
30
36
40
48
60
72
84
100
00
To Find F
Given P
F/P
1.0025
1.0050
1.0075
1.0100
1.0126
1.0151
1.0176
1.0202
1.0227
1.0253
1.0278
1.0304
1.0330
1.0356
1.0382
1.0408
1.0434
1.0460
1.0486
1.0512
1.0538
1.0565
1.0591
1.0618
1.0644
1.0778
1.0941
1.1050
1.1273
1.1616
1.1969
1.2334
1.2836
To Find P
Given F
P/F
0.9975
0.9950
0.9925
0.9901
0.9876
0.9851
0.9827
0.9802
0.9778
0.9753
0.9729
0.9705
0.9681
0.9656
0.9632
0.9608
0.9584
0.9561
0.9537
0.9513
0.9489
0.9466
0.9442
0.9418
0.9395
0.9278
0.9140
0.9050
0.8871
0.8609
0.8355
0.8108
0.7790
Compound
Amount
Factor
To Find F
Given A
F/A
1.0000
2.0025
3.0075
4.0150
5.0251
6.0376
7.0527
8.0704
9.0905
10.1133
11.1385
12.1664
13.1968
14.2298
15.2654
16.3035
17.3443
18.3876
19.4336
20.4822
21.5334
22.5872
23.6437
24.7028
25.7646
31.1133
37.6206
42.0132
50.9312
64.6467
78.7794
93.3419
113.4500
Uniform Series
Present
Worth
Factor
To Find P
Given A
P/A
0.9975
1.9925
2.9851
3.9751
4.9627
5.9478
6.9305
7.9107
8.8885
9.8639
10.8368
11.8073
12.7753
13.7410
14.7042
15.6650
16.6235
17.5795
18.5332
19.4845
20.4334
21.3800
22.3241
23.2660
24.2055
28.8679
34.3865
38.0199
45.1787
55.6524
65.8169
75.6813
88.3825
400.0000
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4994
0.3325
0.2491
0.1990
0.1656
0.1418
0.1239
0.1100
0.0989
0.0898
0.0822
0.0758
0.0703
0.0655
0.0613
0.0577
0.0544
0.0515
0.0488
0.0464
0.0443
0.0423
0.0405
0.0388
0.0321
0.0266
0.0238
0.0196
0.0155
0.0127
0.0107
0.0088
Capital
Recovery
Factor
To Find A
Given P
A/P
1.0025
0.5019
0.3350
0.2516
0.2015
0.1681
0.1443
0.1264
0.1125
0.1014
0.0923
0.0847
0.0783
0.0728
0.0680
0.0638
0.0602
0.0569
0.0540
0.0513
0.0489
0.0468
0.0448
0.0430
0.0413
0.0346
0.0291
0.0263
0.0221
0.0180
0.0152
0.0132
0.0113
0.0025
Uniform Gradient
Gradient
Present Worth
Factor
To Find P
Given G
P/G
0.000
0.995
2.980
5.950
9.901
14.826
20.722
27.584
35.406
44.184
53.913
64.589
76.205
88.759
102.244
116.657
131.992
148.245
165.411
183.485
202.463
222.341
243.113
264.775
287.323
413.185
592.499
728.740
1040.055
1600.085
2265.557
3029.759
4191.242
Gradient
Uniform Series
Factor
To Find A
Given G
A/G
0.0000
0.4994
0.9983
1.4969
1.9950
2.4927
2.9900
3.4869
3.9834
4.4794
4.9750
5.4702
5.9650
6.4594
6.9534
7.4469
7.9401
8.4328
8.9251
9.4170
9.9085
10.3995
10.8901
11.3804
11.8702
14.3130
17.2306
19.1673
23.0209
28.7514
34.4221
40.0331
47.4216
N
5
6
8
9
10
11
12
13
14
15
6781920 21222324 25 20 26 0 5 60 24 100 8
30
36
40
48
72
84

Transcribed Image Text:You are going to save $200 each month for three years so that
you can put a down payment on a new car. If the monthly
compound interest rate on your account is 0.25%, what is the
largest down payment you can make at the end of three years
(immediately after the last deposit)?
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