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Unformatted text preview: Homework 5 key P1 Text 3.1 3.1 (a) $2,000 (c) $2,000 0 1 2 3 4 5 0 1 2 3 4 5 A = $200/yr $2, 000 F = $2,000 (1 + 0.1) = $3,221.01 5 (b) $2,000 (d) $2,000 0 1 2 3 4 5 0 1 2 3 4 5 $440 $480 A = $2,000 (A/P , 10%, 5) $520 $560 $600 = $527.60 P2 Text 3.2 3.2 $20,000 0 Year lease 20 i = 8% n = 20 1 20,000 (a) P = F = = $4,291 n 2 (1+ i) (1+ 0.08) 0 (b) i = 2%/quarter, n = 20 4 = 80, P = 20, 000 80 (1+ 0.02) P = ? = $4,102 P3 Text 3.3 3.3 (a) $10,000 now (b) 0 5 P = ? 1 P = F n (1+ i) $15,000 (1+ 0.1) 5 $15,000 n = 5 years i = 10% = = $9,314 $10,000 > $9,314 so choose (a) 1 In P4 there are various assumptions one might make concerning when the new generator goes on line. With discrete compounding it could be 5 or 6. The key uses a fractional number of years in the compounding formula. P4 Text 3.4 3.4 Peak demand = 105 MW, annual compounding rate = 15% (a) 240 = 105(1 n = 5.91 years + 0.15) n so (b) F = 105 (1 + 0.15) 10.91 F = 432.4 (total demand) 240.0 (present ca 242.4 (MW needed) p a c ity) Roughly 243 MW of cap a city ar e needed. P5 Text 3.6 3.6 (a) F = 240 (F/A, 9%, 40) = $81,100 (b) F = 240 (F/A, 12%, 40) = $184,100 (c) n = (4)(40) = 160 i = 12 4 = 3 F = 60(F/A, 3%, 160) = $224,500 4 (d) ieff = (1.03) 1 = 12.55% = 12.6% P6 Text 3.7 3.7 F 4 $100K 1 0 A 2 48 49 50 119 120 A A 2A 2A i = 0.005 F 1 2A 2A i = 0.0075 F = P(F/P, 1%, 120) = $330,039 F 2 = A(F/A, 0.75%, 48) (F/P, 0.5%, 72) = A(82.372) 1 F = 2A (F/A, 0.5%, 72) = A(172.818) F = F + F = A(255.19) F = F 3 4 2 3 4 1 A(255.19) = 330,039 A = $1,293 2 P7 Text 3.8 3.8 (a) 0 1 i = 1%/mo 60 A = ? $18,000 P = 20,000(1 0.10) = 18,000 A = P(A/P, 1%, 60) = 18,000(0.0222) = $400.40/mo 12 (b) ieff = (1.01) 1 = 12.68% P8 Text 3.10 3.10 (a) A = P(A/P, i%, n) = $50,000(A/P, 8%, 10) = $50,000(0.14903) = $7,451.5 $50,000 i = 8% 1 0 A = ? 10 (b) Charge = (c) 7, 451.5 $/yr = $3.73/hr 2,000 hr/yr F = ? 0 i = 5% 5 $50,000 (d) Unpaid balance P = ? F = P(F/ P, 5%, 5) = $50,000(1.2763) = $63,815 i = 8% 6 5 A = 7451.5 10 P = A (P/ A , 8%, 5) = 7451.5(3.9927) = $29,751.6 3 ...
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This note was uploaded on 05/13/2010 for the course ME 01953 taught by Professor Bard during the Spring '10 term at University of Texas at Austin.
 Spring '10
 BARD

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