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Unformatted text preview: (P/A,0.5%,n) = 48.0000 From 0.5% interest tables, n is slightly greater than 55 Therefore, n = 56 months 10. Problem 3.48 Convert all cash ows into present worth and then amortize: i/yr = (1 + 0.0112 1 = 12.68% Pg = 90,000[1  (1.03/1.1268)10]/(0.1268  0.03) = $551,073 P = 800,000 + Pg = 800,000 + 551,073 = $1,351,073 A = 1,351,073(A/P,12.68%,10) = 1,351,073(0.18194) = $245,813 11. Problem 3.51 Find A per six months and then divide by 6: A/semi = 201,500(A/P,6%,6) = 201,500(0.20336) = $40,977 A/mo = 40,977/6 = $6829.51 2 12. Problem 3.54 Move cash ow to end of interest period and then nd P: Cost/quarter = 100,000(0.019)(3) = $5700 P = 5700(P/A,3%,12) = 5700(9.9540) = $56,737 3...
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This note was uploaded on 03/24/2011 for the course ISEN 302 taught by Professor Ko during the Spring '08 term at Texas A&M.
 Spring '08
 KO

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