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Plates in Engineering Economics

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chewynomnom02
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31 views2 pages

Plates in Engineering Economics

Uploaded by

chewynomnom02
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Plates in Engineering Economics

Annuity

1. You invest $2,000 at the end of each year for 6 years in an account earning 5%
interest annually. What is the future value of the annuity?
2. If you are to receive $5,000 at the end of each year for 8 years with an interest rate of
6%, what is the present value of this annuity?
3. Calculate the future value if $1,500 is invested at the beginning of each year for 7
years, earning 4% interest.
4. What is the present value of receiving $4,000 at the beginning of each year for the
next 5 years with a discount rate of 8%?
5. ow much should be deposited at the end of each year for 10 years to accumulate
$50,000, if the account earns 5% annually?
6. You need $40,000 in 6 years for a car. How much should you invest annually into a
fund earning 4.5% to meet this goal?
7. If you take out a $120,000 loan at 9% interest and you want to pay it back over 10
years, what are the equal annual payments?
8. Suppose your company pays $1,000 per year in the first year, increasing by $100
every year, for 5 years. What is the future value at the end of the period at 5%
interest?
9. What is the future value of an annuity where $500 is paid at the end of every month
for 10 years, with an interest rate of 6% compounded monthly?
10. A perpetuity pays $1,200 annually forever, with a discount rate of 6%. What is the
present value?
11. Calculate the present value of receiving $2,000 annually for 10 years, starting 5
years from now, assuming an interest rate of 7%.
12. What is the present value of receiving payments starting at $3,000, increasing by 4%
annually for 6 years, at an interest rate of 5%?
13. You invest $1,000 annually, with the payment increasing by 3% every year for 10
years. What will the future value be if the interest rate is 6%?
14. Suppose your payments increase by $500 annually, starting from $1,000 in year 1,
for 4 years. If the interest rate is 8%, what is the present value of the annuity?
15. You receive $2,000 annually for the first 5 years and $3,000 annually for the next 5
years. What is the present value of this annuity at 6% interest?
16. A $150,000 loan is taken out at 8% interest for 15 years, but you plan to pay it off
after 10 years with a balloon payment. What is the balloon payment?
17. A company plans to purchase new equipment for $200,000 in 5 years. How much
must be set aside at the end of each year in a sinking fund earning 4.5% to
accumulate the needed amount?
18. You invest $3,000 annually for 8 years at 6%. After 6 years, you withdraw $10,000.
How much will be left at the end of 8 years?
19. Calculate the future value of an annuity due with payments starting at $4,000
annually, increasing by $200 each year for 6 years at 5%.
20. You receive $10,000 annually for 15 years from an annuity that earns 7% interest,
but 15% of each payment is taxed. What is the after-tax future value of the annuity?

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