EBK ENGINEERING ECONOMY
16th Edition
ISBN: 9780133819014
Author: Koelling
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 57P
To determine
Calculate the value of deposit.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A credit card company wants your business. If you accept their offer and use their card, they will deposit 1.5% of your
monetary transactions into a savings account that will earn a guaranteed 6% per year. If your annual transactions total
an average of $23,000, how much will you have in this savings plan after 17 years?
Click the icon to view the interest and annuity table for discrete compounding when /= 6% per year.
The amount you will have in this savings plan after 17 years equals $(Round to the nearest cent.)
The monthly average cable TV bill in 2017 is $81.61. If cable costs are climbing at an annual rate of 7% per year, how much will the typical cable subscriber pay in 2021? Assume annual
compounding.
Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year.
The typical cable subscriber will pay $ per month in 2021 (Round to the nearest cent.)
C
Compare the interest earned by $10,000 for three years at 9% simple interest with interest earned by the same amount for three years at 9% compounded annually. Why
does a difference occur?
Click the icon to view the interest and annuity table for discrete compounding when i=9% per year.
The simple interest earned is
(Round to the nearest dollar.)
(Round to the nearest dollar.)
The compound interest earned is $
There is a difference in the amount of interest earned because compound interest allows interest from previous years to earn additional interest, whereas
simple interest
only considers the original principal.
Chapter 4 Solutions
EBK ENGINEERING ECONOMY
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 - Twelve payments of 10,000 each are to be repaid...Ch. 4 - Prob. 32PCh. 4 - Automobiles of the future will most likely be...Ch. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - A geothermal heat pump can save up to 80% of the...Ch. 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 - Maintenance expenses for a bridge on the Ohio...Ch. 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 - A large bank has increased its annual percentage...Ch. 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. 126PCh. 4 - Analyze the truth of this statement, assuming you...Ch. 4 - Prob. 128PCh. 4 - Prob. 129SECh. 4 - Prob. 130SECh. 4 - Prob. 131SECh. 4 - Prob. 132SECh. 4 - Prob. 133CSCh. 4 - Prob. 134CSCh. 4 - Prob. 135CSCh. 4 - Prob. 136FECh. 4 - Prob. 137FECh. 4 - Prob. 138FECh. 4 - Prob. 139FECh. 4 - Prob. 140FECh. 4 - Prob. 141FECh. 4 - Prob. 142FECh. 4 - Prob. 143FECh. 4 - Prob. 144FECh. 4 - Prob. 145FECh. 4 - Prob. 146FECh. 4 - Prob. 147FECh. 4 - Prob. 148FECh. 4 - Prob. 149FECh. 4 - Prob. 150FECh. 4 - Prob. 151FE
Knowledge Booster
Similar questions
- Nominal and effective interest Joe Franklin is planning to retire in 16 years. He wishes to deposit a regular amount every six months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 10 years. How much must he deposit if the interest rate is 7% compounded quarterly? Solve only using the factor table pleasearrow_forwardCompare the interest earned by $10,000 for three years at 7% simple interest with interest earned by the same amount for three years at 7% compounded annually. Why does a difference occur? Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. The simple interest earned is $ The compound interest earned is $ (Round to the nearest dollar.) (Round to the nearest dollar.) There is a difference in the amount of interest earned because original principal. allows interest from previous years to earn additional interest, whereas only considers thearrow_forwarda) An individual deposits $8,000 semiannually every six months into a savings account. How much does the individual have at the end of 8 years, assuming that she is able to invest her funds at a nominal rate of 14% compounded semiannually?arrow_forward
- The monthly average cable TV bill in 2017 is $74.72. If cable costs are climbing at an annual rate of 7% per year, how much will the typical cable subscriber pay in 2023? Assume annual compounding. Click the icon to view the interest and annuity table for discrete compounding when i= 7% per year. The typical cable subscriber will pay $ per month in 2023(Round to the nearest cent.) Garrow_forwardQ4#: The amount of annuity for 10 years is Rs. 25000. What will be the size of quarterly instalment if the interest rate is 4% compounded quarterly?arrow_forwardA geometric gradient that increases at f= 5% per year for 15 years is shown in the accompanying diagram. The annual interest rate is 10%. What is the present equivalent value of this gradient? AClick the icon to view the diagram for geometric gradient values. Click the icon to view the interest and annuity table for discrete compounding when i= 5 % per year. Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year. 4... The present equivalent value of the gradient is $ (Round to the nearest dollar.)arrow_forward
- Consider a uniform series of cash flows. The first cash flow of $10,000 occurs at time 10 and the last cash flow in the series occurs at time 20. If the interest rate is 8% per period, what is the present equivalent (time = 0) of the series of cash flows?arrow_forwardLindsey plans to deposit her annual bonus into a savings account that pays 3% interest compounded annually. The size of her bonus increases by $1000 each year, and the initial bonus amount she will deposit at the end of year 1 is $2,500. a) Determine how much will be in the account immediately after the 6th deposit. b) What's the future value if she only plans to deposit her annual bonus for 8 years (the last deposit is at the end of year 8)? c) What's the future value if she only plans to deposit her annual bonus for 8 years (the last deposit is at the end of year 8), but also plans to skip the deposits at the end of years 3 and 6?arrow_forwardFind i (the rate per period) and n (the number of periods) for the following loan at the given annual rate. Semiannual payments of $4,200 are made for 13 years to repay a loan at 7% compounded semiannually. (Type an integer or decimal rounded to four decimal places as needed.)arrow_forward
- You plan to deposit $100 at the end of every quarter (3 months) for 8 years starting at the end of month 3. Then after leaving the money in the account for several years, you plan to withdraw everything 15 years from today. How much is available to withdraw at the end of year 15 if the account pays a nominal annual rate of 8% compounded quarterly (every 3 months)? Question 4 Part C: Provide the final value for withdrawal at the end of year 15. Enter your answer in the form: 12345.67arrow_forwardThe monthly average cable TV bill in 2017 is $71.88. If cable costs are climbing at an annual rate of 3% per year, how much will the typical cable subscriber pay in 2020? Assume annual compounding Click the icon t view the interest and annuity table for discrete compounding when i= 3% per year. The typical cable subscriber will pay $ per month in 2020. (Round to the nearest cent.)arrow_forwardIf a lender makes a simple loan of $400 for 3 years and charges 5%, then the amount that the lender receive at maturity is $ If a lender makes a simple loan of $2000 for one year and charges $110 interest, then the simple interest rate on that loan is (Round your response to the nearest two decimal place) If a borrower must repay $106.50 one year from today in order to receive a simple loan of $100 today, the simple interest on this loan is s %. (Round your response to the nearest whole number) O A. 6.0% O B. 65% O C. 6.5% O D. 5.0% wwww www Nextarrow_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