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 24P
To determine

Calculate the value of b.

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Mr. Smith has saved RM1 800 each year for 20 years in Unit trust account. A year after the saving period ended, Mr. Smith withdrew RM7 500 each year for a period of 5 years. In the sixth and seventh years, he only withdrew RM5 000 per year. In the eighth year, he decided to withdraw the remaining money in his account. The interest rate was 6% per year throughout the whole period. Q1 (a) Draw the cash flow diagram SK 5K 7.5K 7.5K 7 SK 7.5K 7.5K 4 6 26 27 20 21 22 23 24 25 28 1.8K 1.8K iSK (b) Determine the remaining amount of money that he can withdraw at the end of the eighth year 1800 E, 6%, 20) (,6%,8) = 7500 (.6%, 5) (F. 6%.,3) + 5x (.6%, 2) + 5K (E, 6%, 1) + X
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Basics Of Engineering Economy

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