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- TRUE OR FALSE For any economy study based on our discussions, it is always necessary to determine the profit to evaluate thebetter/best alternative. If simple interest is evaluated, then the interest obtained will always be directly proportional to the number of yearsassuming that a constant interest rate is used throughout these years.Problem #2 Solve for the following: 1) Present worth equivalence 2) Annual worth equivalence spread from years 1 to 10 3) Future worth equivalence at the end of year 8 4) Future worth equivalence at the end of year 10 i= 10% 10 A = $3000 P=?Please no written by hand solutions Q3. An individual makes five annual deposit of $2000 in a savings account that pays interest at a rate of 4% per year. One year after making the last deposit, the interest rate changes to 6% per year. Five years after the last deposit the accumulated money is withdrawn from the account. How much is withdrawn?
- Q) A civil engineer planning for her retirement places 11% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $200,000 and she expects her salary to increase by 4% each year, what will be th future worth of her retirement fund after 14 years provided it earns 8% per year? Solve it correctly. Typed or handwriting with concept use. Not solve in excel works.A certain property is being sold and the owner receives two bids. The first bidder offered to pay P400000 each year for 5 years and the payment is to be made at the beginning of each year. The second bidder offered to pay P240000 fest ysar, P350000 the second year, and P540000 each year for the next 3 years, all payments to be made at the beginning of each ysar, If money is worth 20% compounded annually, which bid should the owner of the property accept?DRAW ALL CASH FLOW DIAGRAMS 1. Barbara wants to triple the money currently in her account that earns 3.5% per year interest. How long does she need to wait? 2. Joe deposits S8,000 right now and another $3,000 5 years from now. How much money will be in the account 12 years from now? Rate is 4% per year 3. Joe (the same one above) deposits $8,000 now and withdraws $3,000 5 years from now. How much money will be in the account 12 years from now? 4. Jane deposits $2,500 into an account that carns 4.5% per year. 3 years later, the interest rate goes up to 6.5% How much money she will have 8 years after the initial investment? 5. Tim starts his freshman year and would like to take a trip to Europe upon graduation that will cost $5,600. How much he should be saving every year, including his senior year to be able to afford this trip. His bank account earns 4.5% per year interest.
- Q19 solutio n nededIf we are charged $50 on a $500 loan that is due in 1 month, what is the effective annual rate? (ieff) A 100% B 120% C 180% D 200% E 213% F 223% G 243% H 263%For the diagram shown, the respective values of (n1, n2) for the following equation are: P=1000(F/A,4%,n1)(P/F,4%,n2). P = ? 0 1 2 4 5 6 7 8 9 10 (Year) $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Оа. 8 and 2 O b. 10 and 2 Ос. 8 and 10 O d. 10 and 1
- ENGINEERING ECONOMY W/COMPLETE SOLUTION 3.) A man wishes his son to receive P500,000.00 ten years from now. What amount should he invest now if it will earn interest of 12% compounded annually during the period?4. in Year Income, $1000 Cost, $1000 MJ Corp produces and sells a new model of photoxaltais. (PV). Annual cash flows are shown table below. Determine the future worth of the net cash flows at an interest of 10% per year. 8 per year. 1 200 90 2 200 90 3 200 90 4 200 90 5 200 90 6 Don't use excel and please don't upload answers that were already posted 200 90 7 200 90 200 Hide Transcribed Text 4. MJ Corp produces and sells a new model of photovaltaic (PV). Annual cash flows are shown in table below. Determine the future worth of the net cash flows at an interest of 10% 90Question 1Last month you lent a work colleague $5000 to cover some overdue bills. He agreed to pay you in1 month with interest at 2% for the month, thus owing you $5100. Today, when the repayment isdue, he asked you to extend the loan for another month and he would pay you the $5100 nextmonth. In the meantime, you have had the offer to invest as much as you wish in an oil-well venturethat is expected to pay 25% per year and a hot new IT stock that is estimated to return 30% thefirst year. If you let your colleague have another month, what is the opportunity cost of yourdecision? (Note: Express your answer in dollar and percentage amounts.)