Question Number 5You will deposit money into a bank account according to the following schedule:Today4 year from today6 years from today8 years from today12 years from today$182,000$78,000$136,000$115,000$94,000After 12 years from today, what will be the purchasing power of the money inyour bank account, expressed in today's dollars?. You bank pays interest at 7.000%per year, compounded annually. Inflation is expected to be 4.520% per year.

1. Calculating the Future Value (FV) of each deposit at the end of 12 years: The formula for the…

Answered: Question Number 5 You will deposit…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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? Assume that your answer is in units of $. Only input the numeric value of your calculation.
3. For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The interest rate is 10% per year. Year Cash Flow, $ Year Cash Flow, $ 4 200 + 3G 1 200 200 + 4G 2 200 + G 6. 200 + 5G 3 200 + 2G 7 200 + 6G
1.20 At an interest rate of 8% per year, $50,000 one year hence is equivalent to how much now? outflows in his account as follows: Year 0 Amount 10,000 +2,000 2 +2,000 3 -3,000 4 -3,000 The account is expected to earn 7% per year. a. How much would James have in this account at the end of Year 4? b. How much would James have in this account at the end of Year 2? c. What is the equivalent Present Value of this account? d. If James does not deposit or withdraw another dollar from this account, how much would be in this account after Year (10)?
8. Consider a series of cash flows that begins with $1000 received at the end of year 7. At the end of year 8, you receive $1100, and $1200 at the end of year 9. This pattern of increasing cash flow receipts occurs through the end of year 20. What is the present equivalent value (time 0) of this cash flow series when the interest rate is 8% per year?
How much money should be deposited each year for 6 years starting 1 year from today, if you wish to withdraw $5512 each year for 13 years, beginning at the end of 16 years? Let i=12% per year. Round your answer to 2 decimal places. including cash flow diagrams
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Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual withdrawals of $2000 can be made before depleting the funds. If the first withdrawal is made in year 1 after the deposit and if the bank provides an interest rate of 5% per year, how much money should be deposited now? What if Troy decides to withdraw all that he has deposited in the bank now, 5 years later, how much money should he expect to get with an interest rate of 5%? I 2.
How much money should be deposited each year for 10 years starting 1 year from today, if you wish to withdraw $5359 each year for 9 years, beginning at the end of 16 years? Let i=12% per year. Round your answer to 2 decimal places. Draw the cash flow diagram
2. Marion would like to purchase a used car, which requires a down payment of 80,000.00 pesos. He is willing to pay a monthly amortization equal to 25% of his monthly salary. if the seller will agree to a down payment and the balance payable in 3 years at 16% per year payable in monthly basis, how much is the cash value of the car if the first payment will be due at the end of the first month? Mario is receiving a monthly salary of 16,000.00 pesos a month. Show the cashflow diagram.
Liam borrowed money from a bank worth P15,000.00 on January 11, 2020. They agreed on a simple interest scheme with an interest rate of 8 % per annum, he promised to pay his loaned amount on March 10, 2021. (a) How much will the bank earned from this transaction? Answer in pesos with round off to two (2) decimal places.
8. Calculate the future equivalent at the end of 2012 at 8% per year, of the following series of cash flows in the figure: [Use a uniform gradient amount (G) in your solution] Years 2009 2010 2011 2012 $400 $600 $800 $1,000 F = ?
When you take your ﬁrst job, you decide to start saving right away for yourretirement. You put $ 5,000 per year into the company’s 401(k) plan, whichaverages 8% interest per year. Five years later, you move to another job andstart a new 401(k) plan. You never get around to merging the funds in the twoplans. If the ﬁrst plan continued to earn interest at the rate of 8% per year for 35 years after you stopped making contributions, how much is the account worth?

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