Engineering Economy (16th Edition) - Standalone book
Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
Question
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Chapter 4, Problem 1P
To determine

Calculate the future value.

Expert Solution & Answer
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Explanation of Solution

Time period is denoted by n. Interest rate is denoted by i. Future value can be calculated as follows.

Future value=Borrowing+(borrowing×Interest rate×n)=500+(500×0.05×6)=515

Future value is $515.

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Chapter 4 Solutions

Engineering Economy (16th Edition) - Standalone book

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