Interested to Buy Any Domain ? << Click Here >> for more details...
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 %.
- 1 Answers
- 1823 Views
- I also Faced
- E-Mail Answers
Answer Posted / 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 View All Answers
what are the chemicals used in PFR and MFR to Process?
Explain how can one estimate how the friction factor changes in heat exchanger tubes with a change in temperature?
How many years you are having experience in supervising others in lab environment?
What is the largest application for surfactants?
hi all i have doe cheical engg, but i have to go for iob po interview so can anybody suggest me abt the kind of qns that can be asked.
What are the steps taken to operate a tank-blanketing valve?
which reformer efficiencywise best?
Can any one send me the sample test papers of IOCL entry exam to be held on 6th july 2008. Also plz send the interview questions that cud probably be asked........i wud be highly obliged if u can send a few test paers and other stuff @ inderjeetd@gmail.com.........Inderpreet
Explain the steps taken to operate a tank-blanketing valve?
Explain how can you quickly estimate the horsepower of a pump?
can you explain about the design calculations and procedure of boiler
What are some common problems associated with dense phase pneumatic conveying?
what is mass flow rate of steam of 7 kg/cm2 pressure in 1 inch id. pipe.
What is a common failure mechanism for above ground atmospheric storage tanks?
how can i prepare for gate chemical in kolkata
