Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 3, Problem 56P
To determine
Calculate the value of C.
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If you want to have $100,000 in your saving account in ten years, how much do you need to deposit now if
(a) the interest rate is 8% a year compounded monthly?
(b) the interest rate is 8% a year compounded continuously?
Which of the two rates would yield the larger amount in 1 year?
(A) 2% compounded quarterly
B) 2.02% compounded annually
3B. The following equation describes the conversion of a cash flow into an equivalent
equal payment series with N=10:
A= [800+20(A/G,6%,7)] * (P/A, 6%, 7) (A/P,6%,7) + [300(F/A, 6%, 3)-500] * (A/F,
6%, 10)
Reconstruct the original cash flow diagram.
Chapter 3 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10P
Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - Prob. 31PCh. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39PCh. 3 - Prob. 40PCh. 3 - Prob. 41PCh. 3 - Prob. 42PCh. 3 - Prob. 43PCh. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49PCh. 3 - Prob. 50PCh. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - Prob. 53PCh. 3 - Prob. 54PCh. 3 - Prob. 55PCh. 3 - Prob. 56PCh. 3 - Prob. 57PCh. 3 - Prob. 58PCh. 3 - Prob. 59PCh. 3 - Prob. 60PCh. 3 - Prob. 61PCh. 3 - Prob. 62PCh. 3 - Prob. 63PCh. 3 - Prob. 64PCh. 3 - Prob. 65PCh. 3 - Prob. 66PCh. 3 - Prob. 67PCh. 3 - Prob. 68PCh. 3 - Prob. 69PCh. 3 - Prob. 70PCh. 3 - Prob. 71PCh. 3 - Prob. 72PCh. 3 - Prob. 1STCh. 3 - Prob. 2STCh. 3 - Prob. 3ST
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- How long will it take money to double if it is invested at (A) 11% compounded continuously? (B) 13% compounded continuously? (A) At 11% compounded continuously, the investment doubles in years. (Round to one decimal place as needed.) (B) At 13% compounded continuously, the investment doubles in years. (Round to one decimal place as needed.)arrow_forwardWhat payment X 10 years from now is equivalent to a payment of P 1,0006 years from now, if interest is 15% compounded (a) annually, and (b) monthly?arrow_forwardWhat is the present worth of each of the given series of payments?(a) $2.700 at the end of each six-month period for 10 years at 8% compounded semiannually.(b) $10,000 at the end of each quarter for five years at 12% compounded quarterly.(c) $14.000 at the end of each month for eight years at 6% compounded monthly.arrow_forward
- You have borrowed $10,000 from a bank with the understanding that you will pay it off with a lump sum of $12,000 after 2 years. Find theannual rate of interest on this loan.arrow_forwardIf a perpetuity has a price of $750 and an annual interest payment of $35, the interest rate isarrow_forwardCarissa's parents were unable to pay for her last year of college, so she obtained a student loan of $6,500. The conditions of the loan were: She would make no payments while in college, but the interest would accumulate at 3.4% compounded monthly. Upon graduation she would begin equal monthly payments that would repay the loan in 8 years. (Round your answers to the nearest cent.) (a) What was the amount of the loan when she graduated 1 year later? (b) What monthly payments will repay the loan in 8 years?arrow_forward
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