ENGINEERING ECONOMIC ENHANCED EBOOK
14th Edition
ISBN: 9780190931940
Author: NEWNAN
Publisher: OXF
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 36P
(a)
To determine
To find the amount that engineer must invest each year to meet her goal.
(b)
To determine
To calculate the amount of money the engineer will have in the account on her 67th birthday if she invests the same amount from part (a) every year starting from her 33rd birthday.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Marla would like to collect $195,000 to buy a house in 12 years. She thinks she can save money in a money-
market account earning 5% interest per year. She would like to deposit an amount Q today to open the account,
make a deposit every year, and make the last deposit at the end of Year 12 into the account. She also believes that
she can increase the value of the deposit that she makes into the account every year by 3% above what she
deposited the previous year, starting with the amount Q. What is the value of Q with which she will have to open
the account to make this happen?
• $9,350
O $9,293
O $5,130
O $6.677
In 1915, Anas allegedly borrowed
7,000$ from a large New York bank on
the condition that he would repay 7%
of the loan every three months, until
a total of 50 payments had been
made. At the time of the 50th
payment, the 7,000$ loan would be
completely repaid. Anas computed
his annual interest rate to be (0.07 x
7,000 x 4) ÷ 7,000 = 28%. What true
effective annual interest rate did Anas
pay? And what went wrong ?
Ann Marie is 28 years old and just received an inheritance from her parents. She wants to find out how much money she should
invest today such that she can have USD 5,000 at the end of every month for 15 years when she retires at age 60. If she can earn 9%
compounded annually until age 60 and then 5% compounded annually when the fund is paying out, how much money must Ann
Marie invest?
Chapter 4 Solutions
ENGINEERING ECONOMIC ENHANCED EBOOK
Ch. 4 - Prob. 1QTCCh. 4 - Prob. 2QTCCh. 4 - Prob. 3QTCCh. 4 - Prob. 4QTCCh. 4 - Prob. 5QTCCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5P
Ch. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65PCh. 4 - Prob. 66PCh. 4 - Prob. 67PCh. 4 - Prob. 68PCh. 4 - Prob. 69PCh. 4 - Prob. 70PCh. 4 - Prob. 71PCh. 4 - Prob. 72PCh. 4 - Prob. 73PCh. 4 - Prob. 74PCh. 4 - Prob. 75PCh. 4 - Prob. 76PCh. 4 - Prob. 77PCh. 4 - Prob. 78PCh. 4 - Prob. 79PCh. 4 - Prob. 80PCh. 4 - Prob. 81PCh. 4 - Prob. 82PCh. 4 - Prob. 83PCh. 4 - Prob. 84PCh. 4 - Prob. 85PCh. 4 - Prob. 86PCh. 4 - Prob. 87PCh. 4 - Prob. 88PCh. 4 - Prob. 89PCh. 4 - Prob. 90PCh. 4 - Prob. 91PCh. 4 - Prob. 92PCh. 4 - Prob. 93PCh. 4 - Prob. 94PCh. 4 - Prob. 95PCh. 4 - Prob. 96PCh. 4 - Prob. 97PCh. 4 - Prob. 98PCh. 4 - Prob. 99PCh. 4 - Prob. 100PCh. 4 - Prob. 102PCh. 4 - Prob. 103PCh. 4 - Prob. 104PCh. 4 - Prob. 105PCh. 4 - Prob. 106PCh. 4 - Prob. 107PCh. 4 - Prob. 108PCh. 4 - Prob. 109PCh. 4 - Prob. 110PCh. 4 - Prob. 111PCh. 4 - Prob. 112PCh. 4 - Prob. 113PCh. 4 - Prob. 114PCh. 4 - Prob. 115PCh. 4 - Prob. 116PCh. 4 - Prob. 117PCh. 4 - Prob. 118PCh. 4 - Prob. 119PCh. 4 - Prob. 120PCh. 4 - Prob. 121PCh. 4 - Prob. 122PCh. 4 - Prob. 123PCh. 4 - Prob. 124PCh. 4 - Prob. 125PCh. 4 - Prob. 126P
Knowledge Booster
Similar questions
- In order to make CDs look more attractive than they really are, some banks advertise that their rates are higher than their competitors', but the fine print says that the rate is a simple Interest rate. If a person deposits $7,500 at 3% per year simple interest, what compound Interest rate would yield the same amount of money in 3 years? The compound Interest rate that would yield the same amount of money in 3 years is 9.273 %.arrow_forwardJamie has become more conscientious about paying off his credit card bill promptly to reduce the amount of interest paid. He was surprised to learn that he paid $400 in interest in 2007 and the amounts shown over the previous several years. If he made his payments to avoid interest charges, he would have these funds plus earned interest available in the future. What is the equivalent amount 5 years from now that Jamie could have available had he not paid the interest penalties? Let i = 5% per year.arrow_forwardSuppose you start saving for retirement when you are 30 years old. You invest $5,000 the first year and increase this amount by 2% each year to match inflation for a total of 15 years. The interest rate is 7% per year. How much money will you have saved when you are 45 years old? Click the icon to view the interest and annuity table for discrete compounding when i = 2% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 7% per year. When you are 45 years old, you will have saved $ (Round to the nearest dollar.)arrow_forward
- A child’s grandparents have opened a ₱60,000 savings account for the child on the day of her birth. The account pays 1/2% compounded semiannually. The child will be allowed to withdraw the money when she reaches the age of 25. What will the account be worth at that time?arrow_forwardA credit card company wants your business, If you accept their offer and use their card, they will deposit 1% of your monetary transactions into a savings account that will earn a guaranteed 5% per year. If your annual transactions total an average of 20,000. How much will you have in this savings plan after 15 years?arrow_forwardChen's family is saving for a home renovation that they would like to pay for with cash. They would like to begin the renovations at the end of 15 years. At the end of each year, the family deposits money into an account that earns 5% compounded annually. At the end of year 1, they save $10,000. They plan to increase the amount that they save by a constant amount, X. What will be the correct value of X, assuming their renovation costs $150,000?arrow_forward
- You borrow $20,000 to purchase a car and will repay the loan in uniform monthly payments for the next 48 months. The first payment is due one month after the purchase of the car. If the interest rate is 1% per month, determine the amount of your monthly car payment. Assuming you make each payment as scheduled, how much total interest will you pay over the four-year period?arrow_forwardDue to health reasons, Dave is considering early retirement. He currently has $700,000 in a self- managed retirement fund. He thinks he will need $40,000 per year during retirement. He intends to invest his retirement in a low-risk mutual fund which return 1.5% per year. How many years can he live off this retirement fund without the need to look for a job?arrow_forwardA person has made an arrangement to borrow $1,000 now and another $1,000 two years hence. The entire obligation is to be repaid at the end of four years. If the projected interest rates in years one, two, three, and four are 10%, 12%, 12%, and 14%, respectively, how much will be repaid as a lump-sum amount at the end of four years? Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 12% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 14% per year. will be repaid as a lump-sum amount at the end of four years. (Round to the nearest dollar.)arrow_forward
- Susan Ng owns an eight-year-old Prius automobile. She wants to find the present worth of repair bills over the four years that she expects to keep the car. Susan has the car in for repairs every six months. Repair costs are expected to increase by $50 every six months over the next four years, starting with $500 six months from now, $550 six months later, and so on. What is the present worth of the repair costs over the next four years if the interest rate is 12 percent compounded monthlyarrow_forwardSusie Jones is a soda pop “addict” and wonders how much money she could accumulate if she stopped drinking soda pop and deposited the $100 per month she spends on the stuff into a savings plan. If Susie is 18 years old, what amount should she have at retirement, 52 years from now, if she deposited $100 at the end of each month and her savings plan earned 6.75% compounded monthly?arrow_forwardHow long will Mr. Gutierrez earn ₱750,000 if he wants to invest by depositing ₱13,315.42 at the end of every quarter that pays him 18.75% interest compounded quarterly?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