EGR_102_Lab_03B_HW - EGR 102 Introduction to Engineering...

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EGR 102 Introduction to Engineering Modeling Lab 03B Homework As an engineer you are asked to determine the maximum number of machines which can be purchased for a manufacturing assembly line. The company has $200,000 currently available and needs as many machines as possible as soon as possible. A company manager tells you to figure out how many machines to purchase knowing that the company will be able to support yearly payments of $70,000 for a loan. Each machine costs $90,000 and loan details from 5 different banks can be found below. Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Interest rate (i) % 9.5 9.2 6.9 7.5 8.8 Payment period (n) 9 8 8 9 6 Loan Amount (P) $ 390,000 440,000 520,000 380,000 290,000 The annual payment for each bank loan may also be calculated using the equation: ± ² [ ³(´µ³) (´µ³) ·´ ] where P ($) is the present amount of money given to you from the loan, i (%) is the annual interest rate in decimal format, A ($) is the annual payment amount, and n (years)
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This note was uploaded on 04/02/2012 for the course EGR 100 taught by Professor Hinds during the Fall '08 term at Michigan State University.

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