Homework Help is Here – Start Your Trial Now!
Business
Economics
5. An engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan? d) P 6,922.93 a) P 6,999.39 b) P 6,292.93 c) P 6,222.39

5. An engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan? d) P 6,922.93 a) P 6,999.39 b) P 6,292.93 c) P 6,222.39

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
Q 5 please
Choose the correct answers for the following questions: 1. What is the annual equivalent interest rate of a cash flow of $500 received now, with a present worth of $386.47 at an interest rate of 10% per year? a) 5% b) 10% c) 7.6931% d) 15% 2. You expect to deposit the following cash flows at the end of years 1 through 5, ($1,000; $4,000; $9,000; $5,000; and $2,000) respectively. Alternatively, you could deposit a single amount today at the beginning of year 1 (end of year 0). How large does the single deposit need to be today if you can earn 10% compounded annually? Hint: the present value today (t-0) is identical to the single cash flow amount. a) $15,633.62 b) $21,000.00 c) $25,178.10 d) $27,695.91 3. What is the annual equivalent rate of an investment that pays 5% semi-annually? a) 5.25% b) 5.00% c) 4.75% d) 5.50% 4. What is the present worth of a project that has an initial investment of $50,000 and generates annual cash inflows of $10,000 for 10 years, with a discount rate of 8%? b) $46,881 a) $429,907 c) $55,398 d) $82,500 5. An engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan? a) P 6,999.39 b) P 6,292.93 c) P 6,222.39 d) P 6,922.93
Transcribed Image Text:Choose the correct answers for the following questions: 1. What is the annual equivalent interest rate of a cash flow of $500 received now, with a present worth of $386.47 at an interest rate of 10% per year? a) 5% b) 10% c) 7.6931% d) 15% 2. You expect to deposit the following cash flows at the end of years 1 through 5, ($1,000; $4,000; $9,000; $5,000; and $2,000) respectively. Alternatively, you could deposit a single amount today at the beginning of year 1 (end of year 0). How large does the single deposit need to be today if you can earn 10% compounded annually? Hint: the present value today (t-0) is identical to the single cash flow amount. a) $15,633.62 b) $21,000.00 c) $25,178.10 d) $27,695.91 3. What is the annual equivalent rate of an investment that pays 5% semi-annually? a) 5.25% b) 5.00% c) 4.75% d) 5.50% 4. What is the present worth of a project that has an initial investment of $50,000 and generates annual cash inflows of $10,000 for 10 years, with a discount rate of 8%? b) $46,881 a) $429,907 c) $55,398 d) $82,500 5. An engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan? a) P 6,999.39 b) P 6,292.93 c) P 6,222.39 d) P 6,922.93
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS