ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.13 : (i) In the Present Value

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.13 : (i) In the Present Value Multiplication Rule, let PV = present value, Ra = interest rate for first discount, A = duration for first discount; Rc = interest rate for second discount, C = duration for second discount. Let PV = [ 1 / (1 + Ra) ^ A ] [ 1 / (1 + Rc) ^ C ] where ^ is the symbol of power : 3 ^ 2 = 3 x 3, 2 ^ 3 = 2 x 2 x 2. (a) For discounts involving 8 % / year for 3 years and 10 % / year for 9 years, find the value of PV. (b) If Re = interest rate for third discount, E = duration of third discount, form a mathematical equation of PV as a function of A, C, E, Ra, Rc, Re. Note : Discounts are available in the purchase of certain biochemical engineering instruments. (ii) Let R = nominal interest rate related to growth rate of money, r = real interest rate related to growth rate of purchase power. If I = inflation, where the unit of R, r and I is %, find the mathematical relatonship of r as a function of R and I.

Question Posted / kangchuentat

1 Answers
1995 Views
I also Faced
E-Mail Answers

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.13 : (i) In the Present Value Multiplication Rule,..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.13 : (i) (a) Let Ra = 0.08, A = 3; Rc = 0.1, C = 9. Then PV = [ 1 / (1 + Ra) ^ A ] [ 1 / (1 + Rc) ^ C ] = [ 1 / (1 + 0.08) ^ 3 ] [ 1 / (1 + 0.1) ^ 9 ] = 0.33666. (b) PV = [ 1 / (1 + Ra) ^ A ] [ 1 / (1 + Rc) ^ C ] [ 1 / (1 + Re) ^ E ]. (ii) r = R - I. 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

Define a barometric condenser?

0 Answers

solution =2oolitre ,solute =Polyelectrolyte,Solution=water ,we have to prepare 1% solution.how much solute And Solvent?

0 Answers Nixie Engineers Pvt Ltd,

what r the question asked in interview of gate,is it related to course?

0 Answers

what is ifference between PFR ,MFR and batch reactor?

9 Answers BARC, IOCL,

Re: Sugar Cane Bagasse What are the 1. Specific Heat of Bagasse at 50% moisture, 40% moisture and 25% moisture? 2. What is bu;lk density of bagasse at 50% moisture, 40% moisture and 25% moisture? 3. What is specific gravity of bagasse at 50% moisture, 40% moisture and 25% moisture? 4. What is the specific heat of flue gases generated from boiler fuelled by bagasse? 5. What is the specific gravity of flue gases generated from boiler fuelled by bagasse?

0 Answers Voice Engineers,

hello sir..iam keen to sit for iocl interview..please forward sample iocl questions to my id: kunal_kv06@yahoo.co.in

0 Answers IOCL,

what is difference between m3 and nm3?

2 Answers Coromandel,

What is a good relation to use for calculating tube bundle diameters?

0 Answers

what are your personal standards and how do you achive them?

2 Answers IBM, IIT,

What is the working of vaccum distilation coloumn in a petroleum refinary?

4 Answers

plz send the interview questions in the written test asked by hindustan petroleum corporation ltd.Iam a b>tech in chemical engineering.My written test is on feb 2008.urgent plz.send the questions to avazithraja@rediffmail.com

9 Answers AZTEC, Bapex, HPCL,

Explain what type of pump may be appropriate for a liquid near saturation, a low flow rate, and very limited npsha (net positive suction head available)?

0 Answers

For more Chemical Engineering Interview Questions Click Here