Engineering Economics problems, Exercises of Engineering Economy

Chapter 2 of the book engineering economics by Sullivan

Typology: Exercises

2019/2020

Uploaded on 12/01/2020

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AALS yoo borrowed # (0000 from abonk with (8% | P= 3000 F= 50000 (= q_ J 2yWith ish Simple inkeest deducted From the looncit H tine time pre andy wos bihowed. Mr Chavez loan frome G] vautlh porpos: 4 khe actwal vale | gjwrat amar Shovid 2 mother invest Forhher daugiy 5 Abel A. Cosipag sek- 3A me LYA man lel 30,000 4o ther davghtér in trust UAH it ambunts to 50,000,” How | it Wil be held wit the girl | weit canside eng that phe money was Wnested at 7% compu ded quarterly «ott n? F=PGQriy® 50000 = Z0000(1r =ZE)MAY ne 'TBe years ol Tygors #4 ents % wOPerAHVe AA cmaynt oF 200 990.What ts ok Meret if at the end oF two years he kas bo pay He bull amount of Paoool? fnterest = .15(200000) Anmomt received= 200000 ~ 30000 interest = 30 000 Amount received > |'70 OCo \= Pin 30000 =(IT9 CODE) | t= -088 or 8.8% LE she warts her Seom now ? consi de vi componnded quarter y +t will exkn on interest of 2% during the First Five years and 11% comported annvally ag the nQyt five years ? as000= P(\t.ii) P= 48, 302-832 4g 362.832 = PUT yE)O P= 82 144.9029 orP2,145 dante to receive 7250000 ten yeows ing annum, what is the Holal amor to be repaid at fre ead OF one yvar Fe P(t in) = owls eC) = I, 00 Alternate, me trod T= Pri = (0000618 )G) = 1200 E = P+ T = (0000 + (800 E = 00 5) Ar. de Palena borrowed money Crom a cooper ve bent. He received Pizd2 aad promise fo repay Pisce at We end of & months - What IS the disvant yee and te simple mleest rate? = Pt in , soo 2 1342 t * an ()] i =.15097 or 15.7% dete wa Leaming Activities 6) How much Will be dueat He ead OF Go day s if Paso is borowed Cor Oday at 10% per ayingm Simple inkeest rete ? Fe P (sin) = 2s00[! + 10($5) F= Z5d\.6" "h) At a Certain interest vat, Wmpounded semi — aanally PF COCO wil amant (6724000 at the ead of 4eA years. What i$ the amount after Fifteen years 7 Fe PCL ‘ 23000 = ao(s + & JAC b= 13-49% 20\2(6) _ 134205 F = Goo (1+ =) F= 45039.57 B+) A besinessovm has an option to chase ot ty That wid be WortnT(o00 200 "A Sik years. if the value of Hae propor by inxcases . 4% eadn year, how much should Hhe businessman be willing 0. pow Cor this property 2 {ooo oc = PUt 54) © Pe 14467. A ) A man borrous Peco now, promising +0 repay He porcpal ps acaummaked intrest 19d years with a simple interest yale of 10% Per year: How wmch wold a man Ie repay after 4 years t Fe Phtn) = ool + 460] Fe zoo * 10) A Ciem borrews PF so 000 for eight years . How mwach rwSt it repay ia lune Sum ak we end of ight E with an inertst rate of \O%o% a Yeees Fs P+ i)® = 50000 (1 + .10)8 e= 107179 44 05 Present lump sum = tO 174.4405 @ F-10)8 E +i” Present lwmp Sum = 50 o00 Wythe ayersge pete of epsoline aro was P 85 00 c fallon - Ln 44%, the averege pacewas P45. ooper gallon what was Yr aterage amaval’rate oF MERASe in the PRE OF qasiline sie this W yeer peried., a ee vate gs 450th) i= 6% 12-) A student plan fo deposit PiBeo nw the bank now and another P2000 For pre next 2 Years UF he glans to Litadraw P 5060 3 years Grom his last de posit Ke tne PorpOSe of baying Shoes -Whot ull be We ambunt of waney lelt in bank alber | yoar OF his withdrawal ? Ebetive anal Trees ete IS 10%? Fe Puri” Pe 5500 = 2057. 3442928.2 Fie tend # P= 5585.54- 5500 Eis 205s - pie gooocit.woyt PF BESS Fa = MQZs-2 £3 5000(\+ 10)" Fae 5500