question archive 6) Construct a cash flow diagram to find the present worth in year 0 at an interest rate of 15% per year for the following transactions: Initial investment of P 20,000, P 9,000 per year inflows in years 1 to 4
6) Construct a cash flow diagram to find the present worth in year 0 at an interest rate of 15% per year for the following transactions: Initial investment of P 20,000, P 9,000 per year inflows in years 1 to 4
Subject:ChemistryPrice:9.82 Bought3
6) Construct a cash flow diagram to find the present worth in year 0 at an interest rate of 15% per year for the following transactions: Initial investment of P 20,000, P 9,000 per year inflows in years 1 to 4. (5 pts) 7. If an engineer deposits P 250,000 at 15% per year at simple interest, what compound interest rate would yield the same amount of money in 5 years? (5pts)
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6. $ 5694.80
7. 11.8427 %
Step-by-step explanation
PAGE NO. STACY 9050-9050 90 4650 6 2 3 - 20, 060 Assume the interest to be compounded annually me got P = - 20000 + 9050 1.15 (1 , 15 ) 2 + ( 1.15 ) 3+ (1.15) 9 = - 20000 + 9000 1 + 1.15 ( 1.15 ) 0 + ( 1 . 15 ) 2 ( 1 .15 1 3 = - 20000 + 90 00 1 - (1/ 1: 15 ) 3 1:15 1 - 1 1. 15 = x- 20000 + 25694. 80 2 5694 . 80 7 tu simple interest A= P ( itrt ) - A = 250000 ( 1+ 0.15 x 5 437500 Let intest rate off compound enterst ber then A = P ( Itr ) 59 4375000 ( Itt ] 250000 4 . taking log me got In( itr ) = 0.2 lu/ 7 ) > r = 0 . 118427 / 4 11 . 8427 . %
