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 %.



ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.15 : Based on Time Discounting of Money, let y = x..

Answer / 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

More Chemical Engineering Interview Questions

How can viscosity affect the design of a mixer?

0 Answers  


Explain the different types of equipments for the conveyance of solids?

0 Answers  


UNIT OPERATION - EXAMPLE 9.2 : A distillation column separates 10000 kg / hr of a mixture containing equal mass of benzene and toluene. The product D recovered from the condenser at the top of the column contains 95 % benzene, and the bottom W from the column contains 96 % toluene. The vapor V entering the condenser from the top of the column is 8000 kg / hr. A portion of the product from the condenser is returned to the column as reflux R, and the rest is withdrawn as the final product D. Assume that V, R, and D are identical in composition since V is condensed completely. Find the ratio of the amount refluxed R to the product withdrawn D. Hint : Solve the simultaneous equations as follow in order to find the answer (R / D) : 10000 = D + W; 10000 (0.5) = D (0.95) + W (0.04); 8000 = R + D.

1 Answers  


What is the wet bulb globe temperature (wbgt)?

0 Answers  


For a centrifugal pump if the pump is running and we close the discharge valve what is the effect

11 Answers   Asian Paints, NFTDC, Reliance,






DIFFERENTIAL EQUATIONS - EXAMPLE 20.2 : During the landing process of an airplane, the velocity is constant at v. (a) If the displacement of the plane is x at time t, find the differential equation that relates t, x and v. (b) The plane has 2 parts of wheels - the front and the back, separated by a distance L. The front part of the wheel touches the land first, that allows the straight body of the plane to form an angle T with the horizontal land. If the vertical distance between the back part of the wheel and the horizontal land is y, find the equation of y as a function of L and T. (c) Find the differential equation that relates dy as a function of dt, v and sin T. (d) Find the differential equation that consist of dy as a function of y, L, v and dt. (e) Find the equation of y as a function of v, L, t and C where C is a constant. (f) When t = 0, prove that y = exp C as the initial value of y.

1 Answers  


Are there any general rules for flushing slurry lines?

0 Answers  


Question 108 - (a) The correct statement about both the average value of position (<x>) and momentum (<p>) of a 1-dimensional harmonic oscillator wavefunction is <x> = <p> = 1 - x. Find the value of x. (b) The probabilities of finding a particle around points A, B and C in the wavefunction y = f(x) are P(A), P(B) and P(C) respectively. Coordinates are A (3,5), B (4,-10) and C (6,7). Arrange P(A), P(B) and P(C) in term of a < b < c, when | y-coordinate | signifies the probability.

1 Answers  


Why is double the amount of gas collected in one of the test tubes in electrolysis of water than th amount collected in the other? Name this gas?

0 Answers  


what is the main components of air

3 Answers   ONGC,


ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.8 : Cash flow agreement where the sign + or - of the amounts are start negative and at a point switch to positive and stay positive is referred to has an investment. The cash flow could be denoted by the symbol of [a, b, c ...]. Consider the following two cases in a biochemical factory : (a) You pay $1 today. You receive $1.05, one year from now. (b) You pay $3 today. You receive $5, one year from today. You pay $2, two years from today. Determine if cases (a) and (b) are an investment or a business transaction with cash flow symbol. Find the interest rate r in the cash flow in both cases (a) and (b).

1 Answers  


Are there any special considerations to be taken into account for combustion ammonia?

0 Answers  


Categories
  • Civil Engineering Interview Questions Civil Engineering (5085)
  • Mechanical Engineering Interview Questions Mechanical Engineering (4451)
  • Electrical Engineering Interview Questions Electrical Engineering (16632)
  • Electronics Communications Interview Questions Electronics Communications (3918)
  • Chemical Engineering Interview Questions Chemical Engineering (1095)
  • Aeronautical Engineering Interview Questions Aeronautical Engineering (239)
  • Bio Engineering Interview Questions Bio Engineering (96)
  • Metallurgy Interview Questions Metallurgy (361)
  • Industrial Engineering Interview Questions Industrial Engineering (259)
  • Instrumentation Interview Questions Instrumentation (3014)
  • Automobile Engineering Interview Questions Automobile Engineering (332)
  • Mechatronics Engineering Interview Questions Mechatronics Engineering (97)
  • Marine Engineering Interview Questions Marine Engineering (124)
  • Power Plant Engineering Interview Questions Power Plant Engineering (172)
  • Textile Engineering Interview Questions Textile Engineering (575)
  • Production Engineering Interview Questions Production Engineering (25)
  • Satellite Systems Engineering Interview Questions Satellite Systems Engineering (106)
  • Engineering AllOther Interview Questions Engineering AllOther (1379)