Exam (elaborations)
SOLUTION MANUAL FOR FUNDAMENTALS OF ENGINEERING ECONOMICS 4TH EDITION CHAN PARK
- Course
- Institution
SOLUTION MANUAL FOR FUNDAMENTALS OF ENGINEERING ECONOMICS 4TH EDITION CHAN PARK
[Show more]
Content preview
, SOLUTION MANUAL FOR FUNDAMENTALS OFENGINEERING ECONOMICS 4TH EDITION CHAN PARK
Chapter 1 Engineering Economic Decisions
1.1) Not provided
For The Wall Street Journal, go to the Front page to find the section on “What’s
News.” This is a section on a brief summary on major headlines of the day’s
news. Quickly browse through the news summary to see if there is any news
related to business investment. The best places to find the major business news on
investment are sections on “BUSINESS”, “MARKETS” or “TECH.”
1.2)
Not provided
Some of the well-known business publications are:
Daily Newspapers:
o The Wall Street Journal
o The New York Times (Business Section)
o Financial Times
Weekly or Monthly Magazines:
o BusinessWeek
o Forbes
o Money
o Smart Money
o Fortune
,Chapter 2: Time Value of Money
2.1) I (iP)N (0.06)($2, 000)(5) $600
2.2)
Simple interest:
$20,000 $10,000(1 0.075N )
(1 0.075N ) 2
1
N 13.33 14 years
0.075
Compound interest:
$20,000 $10,000(1 0.07)N
(1 0.07)N 2
N 10.24 11years
2.3)
Simple interest:
I iPN (0.10)($10, 000)(5) $5, 000
Compound interest:
I P[(1 i)N 1] $10, 000(1.6105 1) $6,105
2.4)
Option 1: Compound interest with 8.5%:
F $4, 500(1 0.085)5 $4, 500(1.5037) $6, 766.65
Option 2: Simple interest with 9%:
$4, 500(1 0.09 5) $5, 000(1.45) $6, 525
Option 1 is still better.
, 2.5)
Compound interest:
F $1, 000(1 0.065)5
$1, 370.09
Simple interest:
F $1, 000(1 0.068(5))
$1, 340
The compound interest option is better.
2.6)
End of Year Principal Interest Remaining
Repayment payment Balance
0 $15,000.00
1 $4,620.50 $1,200.00 $10,379.50
2 $4,990.14 $830.36 $5,389.36
3 $5,389.35 $431.15 $0
2.7)
P $22, 000(P / F , 5%, 5) $22, 000(0.7835) $17, 237.58
2.8) F $30, 000(F / P, 9%, 3) $30, 000(1.295) $38,850.87
2.9)
F $100(F / P,10%,10) $200(F / P,10%,8) $688
2.10) F $250, 000(F / P, 6%,10) $447, 712
2.11) P $300, 000(P / F ,8%,10) $138, 958
2.12) i 10.5% , two-year discount rate is (1 0.105)2 1.221 (or 22.1%)
2.13)
(a) F $5, 000(F / P, 7%, 5) $7, 013
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Succeed. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $28.09. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83662 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
