(a)
Find the future value for
(a)

Answer to Problem 1P
The future value for
Explanation of Solution
Given data:
The present cost
The normal interest rate
The number of years
The number of compound period
Formula used:
Formula to calculate the future value is,
Here,
Calculation:
To calculate the future value:
Substitute
Therefore, the future value for
Conclusion:
Thus, the future value for
(b)
Find the future value for
(b)

Answer to Problem 1P
The future value for
Explanation of Solution
Given data:
The present cost
The normal interest rate
The number of years
The number of compound period
Formula used:
Formula to calculate the future value is,
Here,
Calculation:
To calculate the future value:
Substitute
Therefore, the future value for
Conclusion:
Thus, the future value for
(c)
Find the future value for
(c)

Answer to Problem 1P
The future value for
Explanation of Solution
Given data:
The present cost
The normal interest rate
The number of years
The number of compound periods per year
Formula used:
Formula to calculate the future value is,
Here,
Calculation:
To calculate the future value:
Substitute
Therefore, the future value for
Conclusion:
Thus, the future value for
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Chapter 20 Solutions
Engineering Fundamentals
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