Lecture No6c3.ppt

# Lecture No6c3.ppt - Contemporary Engineering Economics 4 th...

This preview shows pages 1–7. Sign up to view the full content.

Contemporary Engineering Economics, 4 th edition, ©2007 Interest Formulas for Single Cash Flows Lecture No.6 Chapter 3 Contemporary Engineering Economics Copyright © 2006

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Contemporary Engineering Economics, 4 th edition, © 2007 Types of Common Cash Flows in Engineering Economics
Contemporary Engineering Economics, 4 th edition, © 2007 Equivalence Relationship Between P and F

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Contemporary Engineering Economics, 4 th edition, © 2007 Single Cash Flow Formula- Compound-Amount Factor Single payment compound amount factor (growth factor) Given : Find : F P F N 0 F P i F P F P i N N ( ) ( / , , ) 1 12% 8 years \$5,000 i N P 8 \$5,000(1 0.12) \$5,000( / ,12%,8) \$12,380 F F P
Contemporary Engineering Economics, 4 th edition, © 2007 Practice Problem If you had \$2,000 now and invested it at 10%, how much would it be worth in 8 years? \$2,000 F = ? 8 0 i = 10%

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Contemporary Engineering Economics, 4 th edition, © 2007 Solution 8 Given: \$2,000 10% 8 years Find: \$2,000(1 0.10) \$2,000( / ,10%,8) \$4,287.18 EXCEL command: =FV(10%,8,0,2000,0) =\$4,287.20 P i N F F F P
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern