ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.15 : Based on Time Discounting

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 %.

Question Posted / kangchuentat

1 Answers
1787 Views
I also Faced
E-Mail Answers

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

what is mean by reflux ratio?

4 Answers

What is Pinch Technology?

6 Answers

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

0 Answers

Explain about different types of lamps?

0 Answers

need the type of technical questions in written test

0 Answers

In a crusher where is the energy provided to it is used up for?

0 Answers

Corenuts technology interview questions

0 Answers

What is a good source of equations for calculating discharge flowrates from accidental releases?

0 Answers

why we make urea prills , why we do not make crystals of urea,

1 Answers IFFCO,

HOW WOULD YOU CALIBRATE A ROTAMETER

2 Answers IOCL,

what is fund flow definition

1 Answers Amara Raja,

Input the Roll Number, Name and marks of a small section of 5 students. Display the marks database of these students in the following format. The "Roll Number" and "Name" fields are left justified with 15 columns, and 25 columns, respectively. The "Marks" field is right justified with 5 columns. Assume the marks are in multiples of 0.5 and are from 0 to 100. Display some spaces between each field appropriately. Roll Number 11001 11050 11081 11225 Y2367 Name FIRST NAME LAST NAME FIRSTNAME2 LASTNAME2 I1. I2. FIRSTNAME3 FIRSTNAME4 M1. LASTNAME4 FIRSTNAME5 MID LASTNAME5 Marks 95 80 88 77.5 89.5 The input can be stored in a file, say, marksdata.txt, and the program can be executed by using ./a.out < marksdata.txt

0 Answers

For more Chemical Engineering Interview Questions Click Here