Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 56P
To determine
Calculate the present worth.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A recent government study reported that a college degree is worth an extra P120,000 per year income compare to high school graduate. If the interest is 6% per year and you work for 40 years, what is the future compound amount of this extra income?
How much would your parents have to deposit each month into an account that grows at a rate of 11% per year compounded quarterly
if they want to have $62,000 at the end of year 3 to cover part of your college expenses? Assume no interperiod compounding.
Parents have to deposit $
each month.
A sum of $5,000 is invested at an interest rate of 9% per year. Find the time(years) required for the
money to double if the interest is compounded continuously.
Chapter 3 Solutions
Basics Of Engineering Economy
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Convert an interest rate of 1.5% per month into a...Ch. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10P
Ch. 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 - Erbitux is a colorectal cancer treatment drug that...Ch. 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. 58PCh. 3 - The initial cost of a pulverized coal cyclone...Ch. 3 - Prob. 60PCh. 3 - Prob. 61PCh. 3 - Prob. 62PCh. 3 - Prob. 63PCh. 3 - Prob. 64PCh. 3 - Prob. 65PCh. 3 - Prob. 66PCh. 3 - Prob. 67PCh. 3 - Prob. 68APQCh. 3 - Prob. 69APQCh. 3 - Prob. 70APQCh. 3 - Prob. 71APQCh. 3 - Prob. 72APQCh. 3 - Prob. 73APQCh. 3 - Prob. 74APQCh. 3 - Prob. 75APQCh. 3 - Prob. 76APQ
Knowledge Booster
Similar questions
- You've decided you will put $300 in the bank in year 1 and increase the deposit amount every year by $50 for twenty years (last deposit in year 20). What is the present worth of that money now if the interest rate is 4% per year?arrow_forwardHow much would your parents have to deposit each month into an account that grows at a rate of 10% per year compounded annually if they want to have $90,000 at the end of year 3 to cover part of your college expenses? Assume no interperiod compounding. Parents have to deposit $ each month.arrow_forwardAn electronic device is available that will reduce this year’s labor cost by$12543.The equipment is expected to last for eight years. If labor cost increase at an average rate of 7% per year at interest rate is 12% compounded bimonthly. What is the maximum amount that we could justify spending for the device? Send handwritten solutions.arrow_forward
- Video cards based on a high speed data processor typically cost $250. A recently released light version of the chip costs $150. If Karamba Videos purchases 3000 chips per quarter, what is the present worth of the savings associated with the cheaper chip over a 2-year period at an interest rate of 16% per year compounded quarterly?arrow_forwardCalculate the effective annual interest rate for each of the following cases: (a) 12% per year compounded quarterly; (b) 12% per year compounded monthly; (c) and 12% per year compounded every minute.arrow_forwardSMS Inc. wants to have enough money to purchase a new tractor-trailer in 5 years. If the unit will cost $500,000, how much should the company set aside each year (starting at the end of year 1 and each year until year 5) if the account earns a compound interest of 12% per year? (All the alternatives presented below were calculated using compound interest factor tables including all decimal places) $283,700 $138,705 $78,705 $61,615arrow_forward
- A company that manufactures air-operated drain valve assemblies currently has $110,000 available to pay for plastic components over a 5-year period. If the company spent only $60,000 in year 1, what uniform annual amount can the company spend in each of the next 4 years to deplete the entire budget? Let i= 11% per year. The uniform annual amount the company can spend is $ |arrow_forwardYou borrowed $100,000 at 6% per year compounded monthly for 48 months.Which is the number of first month where the outstanding loan balance is less than $40,000?arrow_forwardOn the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw $4000 from the fund on his 18th birthday, again on his 19th birthday , again on his 20th birthday ,and again on 21st birthday. If the fund earns interest at 9% per year ,compounded annually ,how much should the father deposit at the end of each year, up through the 17th year ?arrow_forward
- Centrum Water & Gas provides standby power to pumping stations using diesel-powered generators. An alternative is the use of natural gas to power the generators, but it will be a few years before the gas is available at remote sites. Centrum estimates that by switching to gas, it will save $15,000 per year, starting 3 years from now through the end of year 20. At an interest rate of 8% per year, determine the present worth of the projected savings.arrow_forwardIf the effective annual interest rate is 9.0% per year, what is the effective quarterly interest rate?arrow_forwardCovido deposits $750 in a savings account at the beginning of each year, starting now, for the next 10 years. If the bank pays 7% per year, compounded annually, how much money will Covido have accumulated by the end of the 10th year?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education