All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
fundamentals engineering economics

Questions and Answers of Fundamentals Engineering Economics

19. You have just purchased ten municipal bonds, each with a $1,000 par value, for $9,500. You purchased them immediately after the previous owner received semiannual coupon payments. The bond rate
18. Five 15-year bonds each having a face value of $1,000 and a coupon rate of 6% per 6 months payable semiannually were purchased for $7,000 8 years ago, and the 16th coupon payment was just made.
17. $25,000 is borrowed at an annual compound rate of 8%. The loan is repaid with 5 annual payments, each of which is 10% greater than the previous payment. How much of the 2nd payment will be a
16. $25,000 is borrowed at an annual compound rate of 8%. The loan is repaid with 5 annual payments, each of which is $500 greater than the previous payment. How much of the 2nd payment will be a
15. $100,000 is borrowed at 6% compound annual interest, with the loan to be repaid with 10 equal annual payments.a. If the fi rst payment is made one year after receiving the $100,000, how much of
14. BioElectroMechanical Systems (BEMS) is a startup company with high potential and little available cash. They obtain $500,000 for necessary technology from a venture capitalist, who charges them
13. GO Tutorial Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and fi nanced the rest, with the agreement to pay nothing for the entire fi
12. Med Diagnostics, Inc. borrowed $200,000 from a lender for a new blood analyzer module to improve the accuracy and consistency of its tests. The rate was 6.0%, 2 percent above the prime rate. The
11. CTL (Concrete Testing Lab) borrowed $80,000 for new equipment at 8% per year, compounded quarterly. It is to be paid back over three years in equal quarterly payments. For each part below, use
10. Video Solution In order to buy a car, you borrow $25,000 from a friend at 12%/year compounded monthly for 4 years. You plan to repay the loan with 48 equal monthly payments.a. How much are the
9. Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X such that they would be indifferent between the two cash fl ow profi les if their TVOM is 12% per
8. Consider the following three cash fl ow series:Determine the values of X and Y so that you are indifferent between all three cash fl ows if your TVOM is 11% per year compounded yearly. End of Year
7. Consider the following three cash fl ow series:Determine the values of X and Y so that all three cash fl ows are equivalent at an interest rate of 15% per year compounded yearly. End of Year Cash
6. Kinnunen Company wishes to give its customers three options on payments for offi ce equipment when the initial purchase price is over a certain amount.For example, the following three payment
5. Video Solution Consider the following two cash fl ow series of payments:Series A is a geometric series increasing at a rate of 8% per year. The initial cash payment at the end of year 1 is $1,000.
4. An automobile is “priced” at $7,000. A buyer may purchase the car for$6,500 now or, alternatively, the buyer can make a down payment of $1,000 now and pay the remaining $6,000 in 8 equal
3. What uniform annual series of cash fl ows over a 12-year period is equivalent to an investment of $5,000 at t 5 0, followed by receipts of $600 per year for 11 years and a fi nal receipt of $1,600
2. Quarterly deposits of $1,000 are made at t 5 1, 2, 3, 4, 5, 6, and 7. Then, withdrawals of size A are made at t 5 12, 13, 14, and 15. If the fund pays interest at a quarterly compounding rate of
1. If $7,000 is borrowed and repaid with four quarterly payments of $600 during the fi rst year and four quarterly payments of $1,500 during the second year after receiving the $7,000 loan, what is
9. $150,000 is deposited in a fund that pays 5% annual compound interest for 2 years, 3% annual compound interest for 2 years, and 4% annual compound interest for 2 years. If uniform annual
8. A house is to be purchased for $180,000 with a 10% down payment, thereby fi nancing $162,000 with a home loan and mortgage. There are no“points” or other closing charges associated with the
7. A $200,000 bond having a bond rate of 8% payable annually is purchased for $190,500 and kept for 6 years, at which time it is sold. How much should it sell for in order to yield a 7% effective
6. Consider a cash fl ow and interest profi le as shown:The worth at the end of Year 3 of these cash fl ows is:a. $5,000.00c. $5,994.56b. $5,504.72d. $5,440.00 Year 0 Year 1 Year 2 Year 3 Cash Flow
5. You purchase a $10,000 bond with a bond rate of 6% per year payable semiannually for 2 years. You pay $9,600 for the bond. Which statement is correct?a. Semiannual cash fl ows will be 2$9,600,
4. You borrow $10,000 at 15% per year and will pay off the loan in three equal annual payments with the fi rst occurring at the end of the fourth year after the loan is made. The three equal annual
3. You borrow $5,000 at 10% per year and will pay off the loan in 3 equal annual payments starting one year after the loan is made. The end-of-year payments are $2,010.57. Which of the following is
2. If the interest rate is 10% per year, what series of equal annual payments is equivalent to the following series of decreasing payments: $5,000, $4,000,$3,000, $2,000, $1,000?a. $3,000b. $3,000(1
1. What single sum of money at t 5 4 is equivalent to receiving $5,000 at t 5 1,$6,000 at t 5 2, $7,000 at t 5 3, and $8,000 at t 5 4 if money is compounded at a rate of 8% per time period?a.
1. Consider the CFD given in Figure 3.9 with the appropriate interest rates indicated. Determine the present worth, future worth, and uniform series equivalents for the cash fl ow series. $200 $300
1. Charlotte purchased a $1,000, 12 percent quarterly bond for $1,020, kept it for 3 years, received twelve coupon payments, and sold it for $950. What was her quarterly yield on her bond investment?
1. Emma plans to purchase a $1,000, 12 percent semiannual bond, hold it for 3 years, receive six coupon payments, and redeem it at par value. What is the maximum amount she should pay for the bond if
1. On January 1, 2011, Austin plans to pay $1,050 for a $1,000, 12 percent semiannual bond. He will keep the bond for 3 years, receive six coupon payments, and then sell it. How much should he sell
1. The owner of a small business borrows $10,000 at 15 percent annual compound interest. Five equal annual payments will be made to repay the loan, but the fi rst will not occur until 4 years after
1. Sara Beth wants to purchase a used car in excellent condition. She has decided on a car with low mileage that will cost $20,000. After considering several alternatives, she identifi ed a local
1. For what interest (discount) rate are the two cash fl ow profi les shown in Figure 3.6 equivalent? $4,000 $1,500 $1,500 $1,500 $1,500 $1,500 1 2 3. i = ? == 4 5 $7,000 $3,500 $3,000 $2,500 $2,000
1. Consider Figure 3.4. Determine the value of X that makes the two cash fl ow profi les equivalent using a TVOM of 15 percent. i= 15% 0 1 2 3 4 0 1 2 3 4 $200 $300 $300 $400 $200 $200 + X $200 + 2X
1. Using an 8 percent discount rate, what uniform series over fi ve periods,[1, 5], is equivalent to the cash fl ow profi le given in Figure 3.1? i=8% $500 $400 $300 $200 $100 0 12 3 4 5 6 7
162. Video Solution A total of $50,000 is borrowed and repaid with 60 monthly payments, with the fi rst payment occurring one month after receipt of the$50,000. The stated interest rate is 6%
161. GO Tutorial Mario and Claudia deposit $100 into their joint account at the end of each month. If their account earns 7%/year/quarter (7% per year compounded quarterly), how long will it take
159. Daniel deposits $20,000 into an account earning interest at 6% per year compounded quarterly. He wishes to withdraw $400 at the end of each month. For how many months can he make these
158. Video Solution You are down on your luck and need a loan, quick!You locate Mr. Loa N. Shark who advertises weekly loans for “an almost imperceptibly small rate” of only 3%, prepaid at the
157. Barbara makes four consecutive annual deposits of $2,000 in a savings account that pays interest at a rate of 10 percent compounded semiannually.How much money will be in the account 2 years
156. Naihui and Haiyan deposit $250 into their joint account at the end of each month. They want to have a total of $12,000 in their account after 40 months:a. What monthly rate of interest must they
155. You have your eyes on a new automobile costing $25,000. If you had the$25,000 and wrote a check for that amount, you could drive off in your new car. You don’t have it, and must fi nance
154. How much money must be invested in an account that pays 6% per year interest to be worth $20,000 at the end of 8 years if (forgetting leap years and making “convenient” assumptions):a.
153. You borrow $2,000 from Gougo’s, a well-known loan consolidation outfi t. The loan is an “unbelievably low” 2.5% per month compounded monthly. You have 2 years to pay back the loan.a. What
152. Video Solution What is the effective annual interest rate for 5% compounded(a) semi-annually, (b) every four months, (c) quarterly, (d) every other month, (e) monthly?
151. What is the effective annual interest rate for 10% compounded (a) semiannually,(b) every four months, (c) quarterly, (d) every other month,(e) monthly?
150. Develop a single spreadsheet that allows you to (1) calculate the effective annual interest rate given the nominal annual interest rate and the number of compounding periods per year, and (2)
149. GO Tutorial What equal monthly investment is required over a period of 40 years to achieve a balance of $2,000,000 in an investment account that pays monthly interest of ¾%?
148. Mary Lib purchases a house for $450,000. She makes a down payment of$40,000 at the time of purchase, and the balance is fi nanced at 6.0 percent compounded monthly, with monthly payments made
147. Solve problem 146 for the case in which the size of each payment is $60 greater than the previous payment.
146. Lynn borrows $5,000 at 15 percent per year compounded monthly. She wishes to repay the loan with 12 end-of-month payments. She wishes to make her fi rst payment 1 month after receiving the
145. If you deposit $4,000 into an account paying 6% per year compounded semiannually, how much will you have in the account after 10 years?
144. Video Solution How much money must be deposited now in order to be able to withdraw $10,000 in 4 years if interest is 5% compounded quarterly?
143. You invest $10,000 in a fund that pays 7% per year for 5 years. How much is in the fund at the end of 5 years if (forgetting leap years and making“ convenient” assumptions):a. Compounding is
142. Yavuz wishes to make a single deposit P at time t 5 0 into a fund paying 15 percent compounded quarterly such that $1,000 payments are received at t 5 1, 2, 3, and 4 (periods are 3-month
141. Video Solution Your boss, who never took an engineering economy course is buying a new house and needs your help in answering some questions.The loan amount will be in the “jumbo loan”
140. Wei Min opens a retirement account that pays 8%/year/month. For the next 30 years he deposits $300 per month into it, with all deposits occurring at the end of the month. On the day of the last
139. You decide to open a retirement account at your local bank that pays 8%/year/month (8% per year compounded monthly). For the next 20 years you will deposit $400 per month into the account, with
138. A refrigerator sold for $500. The store fi nanced the refrigerator by charging 0.5% monthly interest on the unpaid balance. If the refrigerator is paid for with 30 equal end-of-month payments:a.
137. A total of $50,000 is borrowed and repaid with 60 monthly payments, with the fi rst payment occurring one month after receipt of the $50,000.The stated interest rate is 6% compounded monthly.
136. How many monthly payments are required to repay a loan of $12,000 with an interest rate of ¾% per month and end-of-month payments of $400?
135. Carlson Photography receives royalties based on the use of their photographs with a major client. Every year, the client makes deposits in Carlson’s bank account that earns 6% compounded
134. In Problem 132, what uniform annual investment is required to achieve the same account balance?
133. In Problem 132, if Juan decided to wait 10 years before investing for retirement, how much would he have to invest on his 36th birthday to have the same account balance on his 60th birthday?
132. On Juan’s 26th birthday, he invested $7,500 in a retirement account.Each year thereafter he deposited 8% more than the previous deposit. The account paid annual compound interest of 5%. How
131. In a new, highly automated factory, labor costs are expected to decrease at an annual compound rate of 5 percent; material costs are expected to increase at an annual compound rate of 6 percent;
130. In a new, highly automated factory, labor costs are expected to decrease at an annual rate of 5%; material costs will increase at an annual rate of 4%; overhead costs will increase at 8%. The
129. GO Tutorial Susan gets a job upon completion of her MSME degree with a mechanisms design fi rm. Her starting salary is $70,000; each successive year she gets a 5% raise. Assuming she deposits
128. Deposits are made at the end of years 1 through 7 into an account paying 5%per year interest. The deposits start at $4,000 and increase by 15% each year.How much will be in the account
127. You want to be able to withdraw $1,000 from a savings account at the end of year 1, with withdrawals increasing by 10% each year thereafter over a total of 5 years. How much money must be on
126. A boat is purchased by fi nancing $50,000. The loan is to be paid for over a 5 year period with annual payments based on a 15% compounding rate per year. Each successive payment is scheduled to
125. A small company wishes to set up a fund that can be used for technology purchases over the next 6 years. Their forecast is for $9,000 to be needed at the end of year 1, increasing by 5% each
124. A cash fl ow series is increasing geometrically at the rate of 6% per year. The initial cash fl ow at t 5 1 is $1,000. The increasing payments end at t 5 20.The interest rate in effect is 15%
123. On your child’s fi rst birthday, you open an account to fund her college education.You deposit $2,000 to open the account. Each year, on her birthday, you make another deposit, with each being
122. You are preparing the business plan for a new company. A net revenue analysis covering the fi rst 6 years is required for obtaining fi nancing. Net revenue in year 1 is expected to be $50,000
121. Video Solution A $90,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the fi rst year. Each successive year yields a return that is 10% less than the
120. An easy payment plan offered by a local electronics store for your new audio system calls for end-of-year payments of $2,000 at the end of year 1, increasing by 15% each year thereafter through
119. A famous high-volume calculus text generates royalties beginning with$60,000 in the fi rst year and declining each year by 40% of the previous year due to used sales and competition. The author
118. Develop a single spreadsheet that allows you to calculate the (PZA1 i%,j%,n),(FZA1, i%,j%,n), and (AZA1 i%,j%,n) factors. Note that the (AZA1 i%,j%,n)factor is not in Appendix A. For each cell
117. In Problem 116, how much will be in the fund immediately after the 30th deposit if the fund pays 6% compounded annually and each successive deposit is 6% greater than the preceding deposit?
116. GO Tutorial Suppose you make 30 annual investments in a fund that pays 5% compounded annually. If your fi rst deposit is $7,500 and each successive deposit is 5% greater than the preceding
115. Consider the following cash fl ow profi le:Suppose the positive-valued cash fl ows are now replaced by a geometric series. If the cash fl ow at end-of-year 1 is $10,000, what geometric rate is
114. Solve problem 105 for the case in which each successive payment is to be 20% less than the previous payment.
113. Solve Problem 105 for the case in which each successive payment is to be 12% greater than the previous payment.
112. Solve problem 81 for the case in which each successive payment is to be 10% less than the previous payment.
111. Solve Problem 81 for the case in which each successive payment is to be 10% greater than the previous payment.
110. An easy payment plan offered by a local electronics store for your new audio system calls for end-of-year payments of $2,000, $2,500, $3,000, and$3,500 at the ends of years 1 through 4
109. Kim deposits $1,000 in a savings account. Four years after the deposit, half the account balance is withdrawn. Then, $2,000 is deposited annually for an 8-year period, with the fi rst deposit
108. Develop a mathematical relationship for fi nding the accumulated amount F at the end of n years of a geometric series where the interest is i%. Put differently, you already have access to a (PZG
107. What single sum of money at the end of the 3rd year is equivalent to a payment series of $10,000 the 1st year, $9,000 the 2nd year, . . . , down to$6,000 the 5th year? Assume that money has a
106. Solve Problem 105 for the case in which each successive payment is to be$3,000 less than the previous payment.
105. Land is purchased for $75,000. It is agreed for the land to be paid for over a 5-year period with annual payments and using a 12 percent annual compound interest rate. Each payment is to be
104. Below is an equation to compute the present value of a cash fl ow series.Determine the cash fl ow profi le that is implied by the equation.P 5 800 1 950(PZ A i%,4) 2 450(PZG i%,4) 2 600(PZ A
103. Your friend claims that the following series of payments is absolutely worthless since they add up to $0:The time value of money is 18%. Determine the present value of these cash fl ows. End of
102. A cash fl ow profi le starts with $2,000 and increases by $1,000 each year up to $21,000 at time 20. Then, it starts again with $21,000 at time 21 and decreases by $1,000 each year to $2,000 at
101. Below is an equation to compute the present value of a cash fl ow series.Determine the cash fl ow profi le that is implied by the equation.P 5 27,000 1 [1,850 1 200(AZG 8%,6)](PZA 8%,6)(PZF 8%,4)
100. Miller Machining needs to purchase a piece of machinery to be able to compete on a new contract with a fi rst-tier automotive supplier. The machinery will cost $140,000 and the owner arranges to
99. Piyush has recently inherited 20 million INR (Indian rupees) from his late Uncle Scrooge. To keep Piyush from spending his money immediately, Scrooge made arrangements for the inheritance to be

Showing 700 - 800 of 1559

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved