ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.15 : Based on Time Discounting

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.15 : Based on Time Discounting of Money, let y = x / (1 + r) ^ n, where ^ = power, r = interest rate for the period in decimal value, n = number of periods, y = current value, x = future value. According to Present Value Addition Rule, the present value of a set of future payments is equal to sum for present value of each of the payments. In an engineering business, 3 future payments are to be made : $100 after 1 year; $500 after 2 years; $200 after 3 years. (a) Form an equation of y as a function of r. (b) Find the value of y in 5 decimal places if r = 8 %.

Question Posted / kangchuentat

1 Answers
1830 Views
I also Faced
E-Mail Answers

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.15 : Based on Time Discounting of Money, let y = x..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.15 : (a) First future payment : n = 1, x = $100. Second future payment : n = 2, x = $500. Third future payment : n = 3, x = $200. Then total y = sum of x / (1 + r) ^ n = 100 / (1 + r) + 500 / (1 + r) ^ 2 + 200 / (1 + r) ^ 3. (b) When r = 8 % = 0.08, y = 100 / (1 + 0.08) + 500 / (1 + 0.08) ^ 2 + 200 / (1 + 0.08) ^ 3 = 680.02845 (5 decimal places). The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.

Is This Answer Correct ?

0 Yes

0 No

Post New Answer

More Chemical Engineering Interview Questions

ENGINEERING PHYSICS - EXAMPLE 30.3 : (a) The quantum number m is given by m = -s, -s + 1. If s = 0.5, find the values of m. (b) | T > = (cos T) | V > + (sin T) | H >. The V and H states form a basis for all polarizations. Let cos T = 0.8. (i) If (sin T)(sin T) + (cos T)(cos T) = 1, find the value of sin T. (ii) For | T > = a | V > + b | H >, where a x a represents the probability of | V > and b x b represents the probability of | H >. Which one is more abundant, | V > or | H >? (iii) Find the value of T without using any mathematical tools.

1 Answers

Chemical Engineering Unit Operation - Which of the sequence below represent a feasible flows of ethanol processing plants using cellulose as starting material? A. raw material --> heat exchanger --> distillation column --> reactor. B. reactor --> distillation column --> raw material --> heat exchanger. C. heat exchanger --> raw material --> distillation column --> reactor. D. raw material --> heat exchanger --> reactor --> distillation column. E. distillation column --> raw material --> reactor --> heat exchanger.

1 Answers

what is R1,R2,R3, R4........?

0 Answers Okaya,

Corenuts technology interview questions

0 Answers

What information is needed to specify a mixer?

0 Answers

How are plate heat exchangers used in an ammonia refrigeration system?

1 Answers HJ, Reliance,

Explain why does catalytic converter used in an automobile?

0 Answers

What are the factors involved in designing kettle type reboiler?

0 Answers

can any one tell me that how shoul i prepere for entrance exams of psu i mean from which book i have to gone through?

3 Answers BPCL Bharat Petroleum, GACL, GATE, IOCL,

what is petrol density ? why ?

3 Answers Reliance,

What are the chemicals are required for cooling tower passivation? Please mail me in my Email id:-nsput2000@gmail.com

3 Answers

Question 111 - There are 6 spin orbitals in p subshell in a ground state carbon atom. Only 2 electrons fill the p subshell. Number of different ways for n electrons to occupy the k spin orbitals are k! / [ (n!) (k-n)! ]. Find the number of different configurations of electrons to occupy the p subshell in a carbon atom.

1 Answers

For more Chemical Engineering Interview Questions Click Here