ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.19 : In the purchase of a unit

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.19 : In the purchase of a unit of engineering office, a loan has been made to a bank with the following details : Term N = 30 years; interest rate R = 8.07 % / year; security : primary residence; present value pv = $450000; salary = $75000 / year or $56000 / year after tax. (a) Let the discounted present value PV = [ 1 - 1 / (1 + r) ^ n ] / r for arrears, where r = interest rate of discount, n = number of payment, ^ = symbol for power. If the loan repayment was made monthly : (i) calculate the value of r where r = R / k and R is in decimal value; (ii) find the value of n where n = kN; (iii) estimate the value of k where k = number of repayment per year; (iv) calculate the value of PV based on the formula of discounted present value. (b) Calculate the monthly repayment of the loan, MR based on the following formula : pv = PV x MR. (c) Find the percentage of salary remains after paying the loan every month.

Question Posted / kangchuentat

1 Answers
2277 Views
I also Faced
E-Mail Answers

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.19 : In the purchase of a unit of engineering offi..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.19 : Value of k has to be found first : 12 months / year, then k = 12. (a) (i) r = R / k = 0.0807 / 12 = 0.006725. (ii) n = kN = 12 x 30 = 360. (iii) k = 12. (iv) PV = [ 1 - 1 / (1 + r) ^ n ] / r = [ 1 - 1 / (1 + 0.006725) ^ 360 ] / 0.006725 = 135.382. (b) MR = pv / PV = $450000 / 135.382 = $3323.928. (c) Annual repayment = MR x k = $3323.928 x 12 = $39887.136. Percentage of salary remains after paying loan = 100 [ 1 - (annual repayment) / (annual salary after tax) ] = 100 (1 - 39887.136 / 56000) = 28.773 %. 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

respected sir,i have been selected in the written examination(CHEMICAL) of IOCL Panipat held on 30 m1rch, So please tell me which type of questions asked in this interview frequently.Can u mail me some questions?

22 Answers HCL, HCPL, HPCL, IOCL,

A cylindrical vessel of 10m height has water upto 6m and is under a pressure of 15bar.What will be the pressure at the bottom most point of the vessel?

4 Answers

what is the PH of earth? does earth is neutral like ph value 7 for water indicating water is neutral?

0 Answers

Explain the strategies acquired to cure tube vibration and exchangers in a shell?

0 Answers

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.30 : A biochemical engineering sales contract adopts Cost Recovery Method in its company accounting. Gross profit is realised only when cash collections exceed the total cost of goods sold. Let Y = Original Cost Recovered, Z = Gross Profit Realised. Its property was sold at A = $500k with cost of B = $300k. Its engineering accountant receives cash of C = $240k in first year, D = $180k in second year and E in third year. (a) Find the values of Y and Z in : (i) first year; (ii) second year; (iii) third year. (b) What is the exact value of E if all cash has been fully received from sales?

1 Answers

Can anyone tell me how to calculate the quantity of a third component added in an azeotropic batch distillation of a known quantity of azeotropic mixture?

1 Answers

What are the specialized grinding methods?

0 Answers

plz send the interview questions in the written test asked by hindustan petroleum corporation ltd.Iam a b>tech in chemical engineering.My written test is on feb 2008.urgent plz.send the questions to indra_bits10@yahoo.com

0 Answers

UNIT OPERATION - EXAMPLE 9.1 : 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 the difference between material balance and mass balance

4 Answers

testing formula for oxygen by ammonium chloride,ammonium hydroxide and copper

0 Answers

I have Completed my B.Tech in Chemical Engineering from NIT Raipur, I want to prepare for HPCL Please Suggest me some books for Aptitude, Technical Questions & Please send me Previous Year Question Papers.

3 Answers HPCL,

For more Chemical Engineering Interview Questions Click Here