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1) At what rate of interest will an investment double itself in 8 years? 2) An investment project costs P. It is expected to have

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1) At what rate of interest will an investment double itself in 8 years? 2) An investment project costs P. It is expected to have an annual net cash flow of 0.125P for 20 years. A) What is the project's payback period? B) What is the annual interest rate? 3) Revenue from the sale of ergonomic hand tools was $300,000 in years I through 4 and 5465,000 in years 5 through 9. Determine the equivalent annual revenue in years I through 9 at an interest rate of 10% per year. 4) Alex, an engineering graduate, who is planning for early retirement 20 years from now. He believes that he will need $1,000,000 in year 20. He already has $100,000 in his investment account. How much will he has to invest each year for of the following 20 years if the account grows at a rate of 10% per year? 5) 20 years later, Alex is has $1,000,000 in his investment account. He plans to spend $200,000 each year from his account. How many years would it take before his account is depleted? Use i -10% per year 6) Maha borrowed SR 200,000 to purchase a new car. What is the annual interest rate if the loan is to be paid in 5 equal end of year payments of SR 50,000 starting 1 year from the loan date? 7) Find the present worth at i=10% per year for the cash flow shown below. $4,000 $3.000 $2,000 1 2 3 4 5 6 7 8) For the cash flows shown below, determine the value of x that will make the future worth in year 10 equal to $100,000 at interest rate of 10% per year. G-$1.000 9) For the cash flows shown in the diagram, find the future worth at end of year 10 at interest rate of 10% per year. $2,000 $1,000 0 1 2 3 10

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