PW method and the annual worth method will always give you the same conclusion of selecting the best project to implement, even though the life of each project may be different
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Find the final F value from P=1500 if the i% keeps changing…
Find the final F value from P=1500 if the i% keeps changing in the next 15 years as following: 5% for the first 4 years, 8% for the next 5 years and 10% for the last 6 years.
What is the future value of a $15,000 investment today if fo…
What is the future value of a $15,000 investment today if for the next 4 years the interest rate is assumed to be 5%? Use interest table.
What equal amount (Q) must be deposited at the beginning of…
What equal amount (Q) must be deposited at the beginning of each year for the next 5 years in a saving account with 10% interest in order to get a future sum of $1000 at the end of year 6. The Value of Q is most nearly:
You borrowed $5000 with 10% simple interest per year, then t…
You borrowed $5000 with 10% simple interest per year, then the total repayment will be =$6050 by the end of 2 years.
F=2000, n=3 years and i=12% compounded monthly. P is most ne…
F=2000, n=3 years and i=12% compounded monthly. P is most nearly:
You are paying 2% per month for the unpaid balance. Therefor…
You are paying 2% per month for the unpaid balance. Therefore, the effective rate of interest/year that you are paying now is:
The first-year maintenance cost for a new car is estimated t…
The first-year maintenance cost for a new car is estimated to be $100, and it increases at a uniform rate of 10% per year. Using an 8% interest rate, calculate PW of the cost of the first 5 years of maintenance
$7520 is equivalent to $8250, 2 years later if i=8% compound…
$7520 is equivalent to $8250, 2 years later if i=8% compounded semi-annually.
Purchasing power of money depends upon the rate of interest…
Purchasing power of money depends upon the rate of interest and time period