ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.18 : An investor is planning to purchase a small office for biochemical engineering consultancy on loan. In the calculation of the discount of payment in arrears, the following formula is used : y = 1 / (1 + r) ^ 1 + 1 / (1 + r) ^ 2 + 1 / (1 + r) ^ 3 + ... + 1 / (1 + r) ^ n where y = present value, r = interest rate of discount, n = number of payment, ^ = power used in certain computer languages for mathematics. (a) What is the meaning of : arrears? (b) Find a mathematical equation of y (1 + r). (c) Calculate, in less than 3 terms, y as a function of r and n.



ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.18 : An investor is planning to purchase a small o..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.18 : (a) Backward. (b) Let Equation 1 : y = 1 / (1 + r) ^ 1 + 1 / (1 + r) ^ 2 + ... + 1 / (1 + r) ^ n. Multiply Equation 1 with (1 + r) will produce Equation 2 : y (1 + r) = 1 + 1 / (1 + r) ^ 1 + ... + 1 / (1 + r) ^ (n - 1). (c) Equation 2 - Equation 1 will produce yr = 1 - 1 / (1 + r) ^ n, then y = [ 1 - 1 / (1 + r) ^ n ] / r. 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

CHEMICAL FLUID MECHANIC - EXAMPLE 3.3 : The drag coefficient Cd = 0.05 and lift coefficient Cl = 0.4 for a levelled flow aircraft are measured. The velocity of the aircraft is v = 150 ft / s with its weight W = 2677.5 pound-force. (a) Find the value of the lift of the aircraft, L, when it is also its weight. (b) The drag of the aircraft, D = Cd M, L = Cl M. Find the value of D. (c) The power required is P = Dv. If 1 pound-force x (ft / s) = 1.356 W, find the value of P in the unit of Watt or W.

1 Answers  


Are there any general rules for flushing slurry lines?

0 Answers  


What is a black body?

0 Answers  


why GOD ALMIGHTY has made every living thing by water?

5 Answers  


If I do M tech in chemical engineering from iit kgp,iit delhi or iit kanpur...what are the job opportunities,and what salary they offered.plz tell me...i had 156 all india rank..i did not take admission ..but this year i m thinking to take admission...

2 Answers  






What is a good way to get started in doing a plant-wide steam consumption analysis?

0 Answers  


ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.5 : In an American style option for share market, 2 persons - A and B agree to the following : B is required to sell 100 shares of IBMS to A for $85 per share anytime that A wants in the next 8 months. A will pay B $2 per share up front, non-refundable for this option. IBMS involves in petrochemical processing. IBMS stock is currently selling for $80 per share. (a) If A did not buy the share of IBMS from B after 8 months, how much will B earn? (b) If the share of IBMS goes up to $100 / share in 6 months later : (i) how much should A pay B for 100 shares according to their optional agreement? (ii) how much will A earn from 100 shares purchased from B when all the 100 shares are sold to the open market? (iii) how much net profit will A earn for selling 100 shares to the open market?

1 Answers  


A distillation column separates 10000 kg / hr of a mixture containing equal mass of benzene and toluene. The product D recovered from the condenser at the top of the column contains 95 % benzene, and the bottom W from the column contains 96 % toluene. The vapor V entering the condenser from the top of the column is 8000 kg / hr. A portion of the product from the condenser is returned to the column as reflux R, and the rest is withdrawn as the final product D. Assume that V, R, and D are identical in composition since V is condensed completely. Find the ratio of the amount refluxed R to the product withdrawn D. Hint : Solve the simultaneous equations as follow in order to find the answer (R / D) : 10000 = D + W; 10000 (0.5) = D (0.95) + W (0.04); 8000 = R + D.

2 Answers  


What are the specialized grinding methods?

0 Answers  


how to calculat suction head in centrifugal pump?

2 Answers   IOCL,


when selecting psv(pressure safety valve),what are all things we have to keep it in mind?

4 Answers   Qasco,


Question 55 - The differential equation is 3 dy / dt + 2y = 1 with y(0) = 1. (a) The Laplace transformation, L for given terms are : L (dy / dt) = sY(s) - y(0), L(y) = Y(s), L(1) = 1 / s. Use such transformation to find Y(s). (b) The initial value theorem states that : When t approaches 0 for a function of y(t), it is equal to a function of sY(s) when s approaches infinity. Use the initial value theorem as a check to the answer found in part (a).

1 Answers  


Categories
  • Civil Engineering Interview Questions Civil Engineering (5085)
  • Mechanical Engineering Interview Questions Mechanical Engineering (4452)
  • Electrical Engineering Interview Questions Electrical Engineering (16638)
  • Electronics Communications Interview Questions Electronics Communications (3918)
  • Chemical Engineering Interview Questions Chemical Engineering (1095)
  • Aeronautical Engineering Interview Questions Aeronautical Engineering (239)
  • Bio Engineering Interview Questions Bio Engineering (96)
  • Metallurgy Interview Questions Metallurgy (361)
  • Industrial Engineering Interview Questions Industrial Engineering (259)
  • Instrumentation Interview Questions Instrumentation (3014)
  • Automobile Engineering Interview Questions Automobile Engineering (332)
  • Mechatronics Engineering Interview Questions Mechatronics Engineering (97)
  • Marine Engineering Interview Questions Marine Engineering (124)
  • Power Plant Engineering Interview Questions Power Plant Engineering (172)
  • Textile Engineering Interview Questions Textile Engineering (575)
  • Production Engineering Interview Questions Production Engineering (25)
  • Satellite Systems Engineering Interview Questions Satellite Systems Engineering (106)
  • Engineering AllOther Interview Questions Engineering AllOther (1379)