Economy 1.png - FIU Engineering Economy EGN 3613 Dr K Kengskool Must totally do it yourself Special Quiz Preparation for the final exam 60 points total

Economy 1.png - FIU Engineering Economy EGN 3613 Dr K...

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Unformatted text preview: FIU: Engineering Economy: EGN 3613: Dr. K. Kengskool Must totally do it yourself: Special Quiz/ Preparation for the final exam: 60 points total: take home -> Due date 12/5/19 at class time: Do not accept late submission Please include the DETAILS OF YOUR WORKS in separated pieces of paper, no credit without details. Please make copy of your work to keep, before submission since this document will not be returned to you Name ID# Class at Points/each problems below are the actual points that may be expected in the actual final exam, not for this Quiz 1) If I = 6% compounded quarterly, how long (quarter unit) does it take to earn $100 interest on an initial deposit of $300? Answer: (5 points) You can afford monthly payments of $500. A 30 year loans are available at 12% interest compounded monthly. If you make $5000 down payment, find the price of the most expensive house that you can buy. Answer: (5 points) 3) After one year your original $200 in saving account was becoming $212.64. Find the effective of interest. Answer: (5 points) 4) At the end of year 1 through 9, an annual cash in flow = +50. The value of cash out flow at the end of year 4=-Q. Draw this cash flow diagram and find Q if I = 18% Answer: (10 points) (5) The entire principal of the borrowed amount of $10,000 will be repaid in 2 years. However, the quarterly interest of $330 must be paid every 3 months. Find the nominal annual interest rate that you are paying. Answer: (5 points) 20C 150 6) From the following cash flow diagram, find C if I = 12% 10C Answer: (10 points) 100 200 300 400 7) Consider the following 3 mutually exclusive alternatives: If I = 10%, what is your choice? Use NPW method. Fill in with correct numbers, in the provided blank spaces. Choice, Pick: (10 points) A B C Initial Cost $50 $30 $40 Annual Benefit $1 $10 $35 Useful life (years) 5 5 2 PW of Benefit PW of Cost NPW 8) Based upon a monthly payment, which one is a better deal on the same $9000 car. a, 9% interest on the full amount for 48 months, compounded monthly b. A $1000 rebate/discount and 15% interest on the remaining amount for 48 months compounded monthly. Answer: (5 points) 9) Find the exact payback period for the following project without interest: First cost $10,000. Income $3,000/year. Salvage Value $4,000. Useful life 10 years. Maintenance cost $500 in year 1, increasing by $200/year. Show yearly cash flow. Answer: (5 points)...
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  • Summer '13
  • Kengskool

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