ENGINEERING ECONOMIC ENHANCED EBOOK
14th Edition
ISBN: 9780190931940
Author: NEWNAN
Publisher: OXF
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Chapter 3, Problem 54P
To determine
The interest rate which should be selected by an individual is to be determined.
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Jon’s grandfather was planning to give him $11,000 in 14 years. Jon has convinced him to pay him $7,000 now, instead. If Jon invests this $7,000 at 6.5% compounded continuously how much money will he have in 14 years?
a) What type of problem is this? Select an answer Future Value -Simple Interest Future Value - Compound Interest Future Value - Continuously Compounded Future Value - Ordinary Annuity Future Value - Annuity Due Present Value - Ordinary Annuity Present Value - Annuity Due
b) How much will he have? (round to the nearest cent)
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Bank A pays 8% compounded continuously, while bank B pays 8.159% compounded daily. Which
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how long does it take for an investment to double at 1.4% compounded continuously
Chapter 3 Solutions
ENGINEERING ECONOMIC ENHANCED EBOOK
Ch. 3 - Prob. 1QTCCh. 3 - Prob. 2QTCCh. 3 - Prob. 3QTCCh. 3 - Prob. 4QTCCh. 3 - Prob. 5QTCCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5P
Ch. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - Prob. 31PCh. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39PCh. 3 - Prob. 40PCh. 3 - Prob. 41PCh. 3 - Prob. 42PCh. 3 - Prob. 43PCh. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49PCh. 3 - Prob. 50PCh. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - Prob. 53PCh. 3 - Prob. 54PCh. 3 - Prob. 55PCh. 3 - Prob. 56PCh. 3 - Prob. 57PCh. 3 - Prob. 58P
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- Tamara Massey received $1,500,000 from an insurance company after her husband's death. She wants to deposit this amount in a savings account that earns interest at a rate of 8% compounded monthly. Then she would like to make 48 equal monthly withdrawals over four years such that, when she makes the last withdrawal, the savings account will have a balance of zero. How much should she withdraw each month?arrow_forwardMichelle Hunter received $250,000 from an insurance company after her hus- band's death. Michelle wants to deposit this amount in a savings account that earns interest at a rate of 6% compounded monthly. Then she would like to make 120 equal monthly withdrawals over the 10-year period such that, when she makes the last withdrawal, the savings account will have a balance of zero. How much can she withdraw each month?arrow_forwardAt 10% compounded annually, how long will it take for money to double itself?arrow_forward
- How long will an account invested at 11.5% compounded yearly be tripled?arrow_forwardBank A charges 12% compounded monthly on its business loan. Bank B charges 11.8% compounded daily. If you want to borrow money, which bank would you choose?arrow_forwardIn how many years will a sum of money triple itself at 12% compounded annually?arrow_forward
- If the interest rate on an account is 11.5% compounded yearly, approximately how many years will it take to triple the amount?arrow_forwardHow many quarters will it take to triple an initial investment at an interest rate of 14% compounded quarterly?arrow_forwardIf you want to withdraw $10,000 at the the end of two years and $35,000 at the end of four years, how much should you deposit into an account that pays 9% interest compounded annually?arrow_forward
- If P25,000 is invested at 8% interest compounded quarterly, how many years will it take for this amount to accumulate to P45,000?arrow_forwardHow many years will it take for an investment to be twice its value if it earns 8% compounded annually?arrow_forwardYou have $1,000 that you plan to invest in a savings account. The bank offers an annual interest rate of 5%, compounded at different frequencies. Calculate the total amount you'll have after 3 years for each compounding frequency: annually, semi-annually, quarterly, and monthly.arrow_forward
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