ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.19 : In the purchase of a unit of engineering office, a loan has been made to a bank with the following details : Term N = 30 years; interest rate R = 8.07 % / year; security : primary residence; present value pv = $450000; salary = $75000 / year or $56000 / year after tax. (a) Let the discounted present value PV = [ 1 - 1 / (1 + r) ^ n ] / r for arrears, where r = interest rate of discount, n = number of payment, ^ = symbol for power. If the loan repayment was made monthly : (i) calculate the value of r where r = R / k and R is in decimal value; (ii) find the value of n where n = kN; (iii) estimate the value of k where k = number of repayment per year; (iv) calculate the value of PV based on the formula of discounted present value. (b) Calculate the monthly repayment of the loan, MR based on the following formula : pv = PV x MR. (c) Find the percentage of salary remains after paying the loan every month.



ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.19 : In the purchase of a unit of engineering offi..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.19 : Value of k has to be found first : 12 months / year, then k = 12. (a) (i) r = R / k = 0.0807 / 12 = 0.006725. (ii) n = kN = 12 x 30 = 360. (iii) k = 12. (iv) PV = [ 1 - 1 / (1 + r) ^ n ] / r = [ 1 - 1 / (1 + 0.006725) ^ 360 ] / 0.006725 = 135.382. (b) MR = pv / PV = $450000 / 135.382 = $3323.928. (c) Annual repayment = MR x k = $3323.928 x 12 = $39887.136. Percentage of salary remains after paying loan = 100 [ 1 - (annual repayment) / (annual salary after tax) ] = 100 (1 - 39887.136 / 56000) = 28.773 %. 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 a good method of analyzing powders for composition?

0 Answers  


What are the effects of oils on the properties of Polyolefins?

0 Answers   IOCL,


What are the types of membranes used in RO water treatement plant?

2 Answers  


A 1.5 weight % aqueous salt solution is concentrated to 4 weight % in a single-effect evaporator. The feed rate to the evaporator is F = 7500 kg / h and the feed is at 85 degree Celsius. The evaporator operates at 1 bar. By assuming that only pure solvent of water exists in the form of vapor from the feed, calculate the flow rate of such vapor V.

1 Answers  


Please convert 1 kg (mass) of Liquid LPG into Ltrs (volume) of LPG Vapor.

2 Answers   Wak gas,






i badly need a chemical process details for making a project...plz help me out......i m a btech final yr chemical engg student in a govt univ,and we have to make a detailed project on any chemical process with contents like...intro,kinetics , material balance,thermodynamics,process layout,process design,physical conditions,plant location,cost estimation etc.............if any one could help me i will never forget hi thankless work and always try to help u in whatever u ask.............

1 Answers   HPCL,


Where the Induced draft, forced draft & balanced draft furnace are to be used? Selection of furnaces are based on which criteria?

0 Answers   IFFCO, MahaGenco,


Question 100 - (a) Time evolution in Heisenberg picture, according to Ehrenfest theorem is m (d / dt) < r > = < p >, where m = mass, r = position, p = momentum of a particle. If v = velocity, prove that m < v > = < p >. (b) Lande g-factor is given by Gj = Gl [ J (J + 1) - S (S + 1) + L (L + 1) ] / [ 2J (J + 1) ] + Gs [ J (J + 1) + S (S + 1) - L (L + 1) ] / [ 2J (J + 1) ]. If Gl = 1 and under approximation of Gs = 2, prove by calculation that Gj = (3/2) + [ S (S + 1) - L (L + 1) ] / [ 2J (J + 1) ].

1 Answers  


What is a good method of minimizing shell side pressure drop in a shell and tube exchanger?

0 Answers  


Hi, I am preparing for Indian Forest Service (UPSC). Can you please help me to get previous years question papers (Chemcial Engineerign) (atleast 5).

1 Answers  


what is the difference between PFR ,MFR and batch rector

1 Answers   BARC, CPCL,


hi, i have completed B.tech Chemical enggneering, plz can anyone provide me GVK BIO company's interview questions. iam attending the interview for the first time..

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)