Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 4, Problem 39P
To determine
Calculate the present value.
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a) What is the future value of a series of payments of $6,000 each, at the end of 8 years, at 6%
compounded annually? First payment occurred at end of year 1.
b) What is the present value of a series of 6 payments of $5,000 each at 7.25%compounded
annually?
c) What equal-annual-payment series is required in order to repay a present value of $18,000 in five
years at 8% interest compounded annually?
Find the annual interest rate if the nominal rate is 18% compounded: a.) Semiannually b.) Quarterly c.) Monthly?
Please solve complete in hand written
Chapter 4 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10P
Ch. 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 - To buy a 150,000 house, you take out a 9% (APR)...Ch. 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. 1STCh. 4 - Prob. 2STCh. 4 - Prob. 3STCh. 4 - Prob. 4STCh. 4 - Prob. 5ST
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Similar questions
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- A series of equal quarterly payments of $5,000 for 10 years is equivalent to what present amount at an interest rate of 8% compounded quarterly. a) Between $133, 068-$139,968 b) Between $140,915 $149.915 c) Between $101.915 $105,915 d) Between $193,068-$199.968 e) Between $231.915 $235,915arrow_forwardWhat type of interest is obtained when the nominal interest rate is divided by the number of compounding periods in a year? a effective interest rate per year b nominal interest rate per compounding period c effective interest rate per compounding period d nominal interest rate per yeararrow_forwardWhich of the following compounding rates is equivalent to an effective interest rate of 2.75% per year? 2.7% compounding six-monthly 2.75% compounding yearly 2.6% compounding quarterly 2.6% compounding monthlyarrow_forward
- 4.39. What is the present worth of the following series of payments? (a) $5,000 at the end of each six-month period for 12 years at 9% compounded semiannually. $7,000 at the end of each quarter for 10 years at 8% compounded quarterly. (b) (c) $3,500 at the end of each month for five years at 6% compounded monthly.arrow_forwardWhat will be the amount accumulated by each of these present investments? a) $5,635 in 10 years at 5% compounded semiannually. b) $7,500 in 15 years at 6% compounded quarterly. c) $38,300 in 7 years at 9% compounded monthly.arrow_forwardIf you invest $4,000 at 3% interest compounded monthly, how long will it take you to reach $5,000 ?arrow_forward
- What is the future worth of the following series of payments? a) $30,000 at the end of each six-month period for five years at 8% compounded semiannually. b) $50,000 at the end of each quarter for 10 years at 6% compounded quarterly. c) $13,000 at the end of each month for six years at 9% compounded monthly.arrow_forwardWhat is the future worth of each given series of payments?(a) $8,000 at the end of each year for five years at 7% compounded annually.(b) $10,000 at the end of each year for eight years at 8% compounded annually.(c) $18,000 at the end of each year for 20 years at 10% compounded annually.(d) $7.000 at the end of each year for 12 years at 12% compounded annually.arrow_forwardIf the nominal annual interest rate is 5% compounded monthly, what is the effective interest rate?arrow_forward
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