İTÜ A family plan their currently 4-year-old kid to be able to withdraw Money in his 18th, 19th, 20th, 21st, 22nd, and 23rd birthdays from the account they opened. First one being 150000 TL and the remaining ones being 30.000TL with arithmetic incremental cash. They plan him to be able to pay his collage and masters degree tuition with this Money. They are going to start the annual (same-amount) payments in his 5th birthday and keep going till the 15th. 3 months compound intrest : %16 every year Whats the minimum amount of Money they have to pay annualy for their plan to work?

İTÜ A family plan their currently 4-year-old kid to be able to withdraw Money in his 18th, 19th, 20th, 21st, 22nd, and 23rd birthdays from the account they opened. First one being 150000 TL and the remaining ones being 30.000TL with arithmetic incremental cash. They plan him to be able to pay his collage and masters degree tuition with this Money. They are going to start the annual (same-amount) payments in his 5th birthday and keep going till the 15th. 3 months compound intrest : %16 every year Whats the minimum amount of Money they have to pay annualy for their plan to work?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Draw cash flow as well !!
4:09 470 3 of 3 Assignment 2-2022.pdf 420 ct the cash flow diagram for A mechanical device will cost $20,000 when purchased. Maintenance will cost $1000 per year. The device will generate revenues of $5000 per year for 5 years. The salvage value is $7000. 8. Each year Exxon-Mobil expends large amounts of funds for mechanical safety features throughout its worldwide operations. Carla Ramos, a lead engineer for Mexico and Central American operations, plans expenditures of $1 million now and each of the 2 next 4 years just for the improvement of field-based pressure- release valves. Construct the cash flow diagram and find the equivalent value of these expenditures at the end of year 4, using a cost of capital estimate for safety-related funds of 12% per year. 9. An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 $2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 =…
.Dustin has P15,000 in cash and he would like to invest in business. His estimates of the year by year receipts and disbursements for all purposes are shown in the table: Year Receipts Disbursements 4 P6000 P1000 5 P6200 P1200 6 P7500 P1500 7 P8800 P1800 Find the interest if money is compounded annually.
Here comes an investment firm. He offers you to deposit P 2,500.00 at the endof each month for 5 years at an interest of 0.5% effective per month. How muchcan you withdraw 30 years after your last payment?
A wealthy business Mr. Tan wants to start a permanent fund for supporting research directedtoward sustainability. The donor Mr. Henry plans to give equal amounts of money for each of thenext 5 years plus one now, so that P100,000 per year can be withdrawn each year forever. Beginning inyear 6. If the fund earns interest at a rate of 8% per year. How much money must be donated eachtime? What would be the formula and the cashflow diagram?
A friend of yours bought a new sports car with a $5,000 down payment plus a $26,000 car loan that is financed at an interest rate of 0.25% per month for60 months. a. Calculate the required monthly loan payment on the car. b. How much does your friend still owe on the car loan immediately after she makes the 24th monthly payment? c. If, after the 24th payment, she decides to pay $300 more each month, how many months will it take her to payoff the remaining loan she owes? a) The required monthly Payment is $ (round to nearest cent) b. Your friend still owes on the car loan. (Round to the nearest dollar.) c. It will take her months. (Round-up to the nearest month)
Leon and Heidi decided to invest $2,500 annually for only the first eight years of their marriage. The first payment was made at age 25. If the annual interest rate is 12 percentage, how much accumulated interest rate and principal will they have at age 65?
You are paying into a mutual fund that earns7% compound interest. If you are making an annualcontribution of $14,000, how much will be in thefunds in 25 years?
How much money would have to be placed in a sinking fund each year toreplace machine B at the end of 25 years if the fund yields 10% annualcompound interest and if the first cost of the machine is assumed toincrease at a 6% annual compound rate? (Assume the salvage value doesnot change.) Group of answer choices A. $3,600 B. $4,110 C. $2,400 D. $7,000
You want to lend $12,000 as a bank deposit in a private bank with an interest rate 3 % per month. You plan to withdraw principle and interest as equal/uniform end-of- period payments over 32 MONTHS. What is the value of the total payment? What is the total interest paid to you at the end of 32 months?
Jack plans to expand his firm 6 years from now so he plans to makequarterly deposits of P100,000 in a bank account for 5 years. If the deposits will bemade at the start of the periods, how much money can he withdraw to start theexpansion by the end of the 6th year if the money earns an interest of 15% compoundedsemi-annually? Show full solution
DRAW ALL CASH FLOW DIAGRAMS 1. Barbara wants to triple the money currently in her account that earns 3.5% per year interest. How long does she need to wait? 2. Joe deposits S8,000 right now and another $3,000 5 years from now. How much money will be in the account 12 years from now? Rate is 4% per year 3. Joe (the same one above) deposits $8,000 now and withdraws $3,000 5 years from now. How much money will be in the account 12 years from now? 4. Jane deposits $2,500 into an account that carns 4.5% per year. 3 years later, the interest rate goes up to 6.5% How much money she will have 8 years after the initial investment? 5. Tim starts his freshman year and would like to take a trip to Europe upon graduation that will cost $5,600. How much he should be saving every year, including his senior year to be able to afford this trip. His bank account earns 4.5% per year interest.