Engineering Economic Analysis

166 PRESENTWORTH ANALYSIS

5-5 Compute the value ofPfor the following diagram. 5-8 Ifi=10%, what is the value ofP?

B B B B

120 120 120 t t t t

t r 5; r t r o-[-2-3-4-5-6-7~~'oo

0-[-2-3-4-5-6-7-8-9 1

j

i=lO% P

5-9 A stonecutter, assigned to carve the headstone for a

well-known engineering economist, began with the

p following design.

5-6 Compute the value ofPfor the following diagram.

5G

4G

60 60 60 60 60

t t t t t

0-1-2-3-4-5

1

120

r

G

f

0-1-2-3-4-5

2G

r

3G

r

i= 10%

p

p

(Answer:P=$324.71)

5-7 Use a geometric gradient factor to solve the following
diagram forP.

He then started the equation as follows:

P=G(PjG,i,6)

266.20

He realized he had made a mistake. The equation

should have been

P=G(PjG, i,5) +G(PjA, i, 5)

i= 15%

The stonecutter does not want to discard the stone and

start over. He asks you to help him with his problem.

The right-hand side must be for the first equation to

be correct for the carved figure, mul!iplied by one

compound interest factor, taking the form:

. ''Op= G(PjG, i,6)( ,i, )

p Write the complete equation.

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