Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 92P
To determine
Calculate the present value.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Mr. Smith has saved $1969 each year for 20 years. A year after the saving period ended, Mr. Smith withdrew $7365 each year for a period of 5 years. In the sixth and seventh years, he only withdrew $5136 per year. In the eighth year, he decided to withdraw the remaining money in his account. If the interest rate was 6.41% per year throughout the whole period, what was the amount he withdrew at the end of the eighth year?
How much money should be deposited annually in a bank account for five years if you wish to withdraw $3,000 each year for three years, beginning five years after the last deposit? The interest
rate is 4% per year.
Click the icon to view the interest and annuity table for discrete compounding when i= 4% per year.
The annual deposit amount should equal $ per year. (Round to the nearest dollar.)
C
Suppose 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.)
Chapter 4 Solutions
Engineering Economy, Student Value Edition (17th Edition)
Ch. 4 - Compare the interest earned by 9,000 for five...Ch. 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 - 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 - DuPont claims that its synthetic composites will...Ch. 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. 101PCh. 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. 151FECh. 4 - Prob. 152FECh. 4 - Prob. 153FE
Knowledge Booster
Similar questions
- A cash flow series is increasing geometrically at the rate of 9% per year. The initial payment at EOY 1 is $5,000, with increasing annual payments ending at EOY 20. The interest rate is 16% compounded annually for the first years and 5% compounded annually for the remaining 12 years. Find the present amount that is equivalent to this cash flow. The present amount that is equivalent to this cash flow series is $?arrow_forwardsolvearrow_forwardLeon and Heidi decided to invest $2,500 annually for only the first eight years of their marriage. The first payment was made at age 20. If the annual interest rate is 8%, how much accumulated interest and principal will they have at age 65? Click the icon to view the interest and annuity table for discrete compounding when i = 8% per year. The accumulated interest and principal will equal $ (Round to the nearest dollar.)arrow_forward
- Regular payments of $2000 are made at the end of each compounding period. The account earns a rate of 5.1% per year, compounded 4 times per year. What is the future value of this account after 38 years? Answer: $arrow_forwardAnswer very fast..arrow_forwardJohn plans to make 10 equal annual deposits starting one year from now into a fund that pays an interest of 10% per year compounded annually. He would like to withdraw $15,000 each year for 10 years, starting one year after the last annual deposit. If the account balance is to be zero immediately after the last withdrawal, what should be John's annual deposit?arrow_forward
- UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS AND DRAW THE CASH FLOW DIAGRAM. NO LONG EXPLANATION NEEDED. FOLLOW THE INSTRUCTIONS CAREFULLY. Calculate the future equivalent at the end of 2017, at 8% per year, of the following series of cash flows: [Use a uniform gradient amount (G) in your solution.]arrow_forwardA principal of $9250 compounded monthly amounts to $15676.52 in 7 years. What is the periodic and nominal annual rate of interest? PV = FV => CY= n= TH IY = (up to 4 decimal places) 96 (up to 2 decimal places)arrow_forwardYou 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_forward
- Sarah is going to borrow money for her college expenses. Her local credit union will lend Sarah $15,000 now at a nominal interest rate of 4% per year,compounded quarterly. Then after two years, the credit union will lend her an additional $15,000 at a higher interest rate of 6% per year compounded annually. Sarah will repay these loans over four years when she graduates. How much does Sarah owe the credit union when she graduates?arrow_forwardSuppose that the parents of a young child decide to make annual deposits into a savings account, with the first deposit being made on the child's fifth birthday and the last deposit being made on the 15th birthday. Then, starting on the child's 18th birthday, the withdrawals as shown will be made. If the effective annual interest rate is 8% during this period of time, what are the annual deposits in years 5 through 15? Use a uniform gradient amount (G) in your solution.arrow_forwardJoseph Ray just received an inheritance of $50,000 from his great aunt. He plans to invest the funds for retirement. If Joseph can earn 6% per year with quarterly compounding for 30 years, how much will he have accumulated? $271,550 $269,113 $284,622 $298,466arrow_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:PEARSONEngineering 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 LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial 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