Engineering Economic Analysis

u. .. _ _ _..u_ Single Payment Compound Interest Formulas 79 Let's examine the computations further. If $625.16 is invested for ...

80 INTERESTAND EQUIVALENCE Since we have already derived the relationship p~-- - --=(1 +~. --".-.i) -n F we write p :- 400(1 + 0 ...

Summary 81 earn more interest each year, indicating that we can begin with asmaller Pand still accumulate enough money for the s ...

82 INTERESTAND EQUIVALENCE Problems 3-1 In your own words explain thetime value of money. From your own life (either now or in a ...

Problems 83 country without the approval of Congress. Assum- ing the senator's math is correct, how much will the foreign countr ...

After Completing This Chapter... The student should be able to: ·Solve problems modeled by the uniform series compound interest ...

.- . . More Interest Formulas Anne Scheiber's Bonanza When Anne Scheiber died in 1995,age 101, she left an estate worth more tha ...

86 MORE INTERESTFORMULAS Chapter 3 presented the fundamentalcomponents of engineeringeconomic analysis,includ- ing formulas to c ...

Uniform Series Compound Interest Formulas 87 Looking at Figure 4-1, we see that if an amountAis investedat the end of each year ...

88 MORE INTERESTFORMULAS .....S...bU:JTlON1Ic.".,," ...,>~ The diagram on the left shows the situation from the man's point o ...

Uniform Series Compound Interest Formulas 89 Jim Hayes read that out west, a parcel of land could be purchased for $1000 cash. J ...

90 MORE INTERESTFORMULAS p r O-1 2~3-4 5 t t t t t A A A A A I= -- 4 4 ~-~~ P=$5000 n=5 i__8% A=unknown = Tb;eannualloan paymeQt ...

Uniform Series Compound Interest Formulas 91 n= 60 i=1% p = 'SOlUfflbN,)" ,I.. .,' In this problem we are being offered a contra ...

92 MORE INTERESTFORMULAS P= A(P/A,i,n) $6800= $140(P/A, i, 60) . .~.;... .. .... ._~ .- 6800 (P/A, i,60) = - 140 = 48.571 We kno ...

r Uniform Series Compound Interest Formulas 93 100 100 100 t t t 0-1-2-3-4-5 . .. .... 1 F We see that the cash flow diagram is ...

94 MORE INTERESTFORMULAS IALTERNATESOLUTION. 100 100 100 t t t 0-1-2-3-4-5 - 100 100 100 t t t 0-1-2-3-4-5 1 F F Looked at this ...

u + __ n Uniform Series Compound Interest Formulas 95 One could substitute the value of FI frO!ll the first equation into the se ...

96 MORE INTERESTFORMULAS !SOlUTION 2 30 t. t 2; 0-1-2-3-4 1 1 P F The relationship betweenPandFin the diagram is P= F(PjF, 15%,4 ...

-- - --- --- ---- Relationships Between Compound Interest Factors 97 Combining, we have P- [20(PI A,15%,3) +.10(P IF,. -... '~- ...

98 MORE INTERESTFORMULAS TJIeuniform series compound amount factor equals 1plusthe sum of(n- 1) terms of the single payment comp ...