Solve problem 3.6 and 3.12
Problems to contributed Hamed Kashani, Saeid Sadri, and Baahak Ashuri, Georgia Institute of Technology 3-10 3-13 by A woman borrowed $2000 and agreed to repay it at the end of 3 years, together with 10% simple interest per year. How much will she pay 3 years hence? 3-2 3-10 How long will it take for an investment to double ae A $5000 loap was to be repaid with 8% simple annual interest. A total of $5350 was paid. How long had the loan been outstanding? Problems 3-4 to 3-6 contributed by Hamed Kashani, Saeid Sadri, and Baabak Ashuri, Georgia Institute of Technology At an interest rate of 10% per year, $100,000 today is equivalent to how much a year from now? 3-3 4% per year compounding annually? A firm has borrowed $5,000,000 for 5 years at 10% per year compound interest. The firm will make no payments until the loan is due, when it will pay off the interest and principal in one lump sum. What is the total payment? 3.11 3-4 3-12) Assume that you save 1 penny a day for 50 years A company invested $450,000 ten years ago in a new technology that is now worth $1,000,000. What rate of interest did the company earn on a simple interest basis? that you deposit it in the bank at the end of cach month, and that there arc 30.5 days per month (you save 30.5 cents each month). How much do you have after 50 years, if: (a) The bank does not pay any interest. (b) The bank pays 2% per month interest. 3-5 3-6) How long will it take for an investment to double at a 4% per year simple interest rate? 313 A manufacturing company made an investment 10 3-7 In your own words explain the ime value of money. years ago that is now worth $1,500,000. How much was the initial investment: From your own life (either now or in a situation that might occur in your future), provide an exam- ple in which the time value of money would bc important. Which is more valuable, $20,000 received now or $5000 per ycar for 4 years? Why? (a) at a simple interest rate of 10% per year? (b) at an interest rate of 10% per year compounding 3-8 annually? agdalen, Miriam, and Mary June were asked to consider two different cash flows: $500 that they could receive today and $1000 that would be received Single Payment Factors 3-14 Solve the diagram for the unknown Q assuming a 3-9 M 10% interest rate. Problems to contributed Hamed Kashani, Saeid Sadri, and Baahak Ashuri, Georgia Institute of Technology 3-10 3-13 by A woman borrowed $2000 and agreed to repay it at the end of 3 years, together with 10% simple interest per year. How much will she pay 3 years hence? 3-2 3-10 How long will it take for an investment to double ae A $5000 loap was to be repaid with 8% simple annual interest. A total of $5350 was paid. How long had the loan been outstanding? Problems 3-4 to 3-6 contributed by Hamed Kashani, Saeid Sadri, and Baabak Ashuri, Georgia Institute of Technology At an interest rate of 10% per year, $100,000 today is equivalent to how much a year from now? 3-3 4% per year compounding annually? A firm has borrowed $5,000,000 for 5 years at 10% per year compound interest. The firm will make no payments until the loan is due, when it will pay off the interest and principal in one lump sum. What is the total payment? 3.11 3-4 3-12) Assume that you save 1 penny a day for 50 years A company invested $450,000 ten years ago in a new technology that is now worth $1,000,000. What rate of interest did the company earn on a simple interest basis? that you deposit it in the bank at the end of cach month, and that there arc 30.5 days per month (you save 30.5 cents each month). How much do you have after 50 years, if: (a) The bank does not pay any interest. (b) The bank pays 2% per month interest. 3-5 3-6) How long will it take for an investment to double at a 4% per year simple interest rate? 313 A manufacturing company made an investment 10 3-7 In your own words explain the ime value of money. years ago that is now worth $1,500,000. How much was the initial investment: From your own life (either now or in a situation that might occur in your future), provide an exam- ple in which the time value of money would bc important. Which is more valuable, $20,000 received now or $5000 per ycar for 4 years? Why? (a) at a simple interest rate of 10% per year? (b) at an interest rate of 10% per year compounding 3-8 annually? agdalen, Miriam, and Mary June were asked to consider two different cash flows: $500 that they could receive today and $1000 that would be received Single Payment Factors 3-14 Solve the diagram for the unknown Q assuming a 3-9 M 10% interest rate
