Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 4, Problem 23P
To determine

Calculate the present worth.

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Identify the payment period and compounding period for the following situations:a. Deposits are made each quarter into an account reserved for purchasing new equipment two years from now. The interest rate on the deposits is 12% per year compounded monthly.b. The Williams family takes a $10,000 withdrawal from a second retirement package each 6 months to pay property and income taxes. The funds are invested in a fixed return annuity that pays 7% per year.
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A bond with a face value of $10,000 pays interest of 8​% per year. This bond will be redeemed at its face value at the end of ten years. How much should be paid now for this bond when the first interest payment is payable one year from now and a 9​% yield is​ desired?

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Basics Of Engineering Economy

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