slides session 2 TVOM class Pt1 chrt 3.ppt

P 2000pa 55 p 2000432948 865896 p pv55 2000 p 865895

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P = $2000(P|A 5%,5) P = $2000(4.32948) = $8658.96 P =PV(5%,5,-2000) P = $8658.95
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Principles of Engineering Economic Analysis , 5th edition Example 2. 17 Troy Long deposits a single sum of money in a savings account that pays 5% compounded annually. How much must he deposit in order to withdraw $2,000/yr for 5 years, with the first withdrawal occurring 1 year after the deposit? P = $2,000(P|A 5%,5) P = $2,000(4.32948) = $8,658.96 P =PV(5%,5,-2000) P = $8658.95
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Principles of Engineering Economic Analysis , 5th edition Example 2. 17 Troy Long deposits a single sum of money in a savings account that pays 5% compounded annually. How much must he deposit in order to withdraw $2,000/yr for 5 years, with the first withdrawal occurring 1 year after the deposit? P = $2,000(P|A 5%,5) P = $2,000(4.32948) = $8,658.96 P =PV(5%,5,-2000) P = $8,658.95
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Principles of Engineering Economic Analysis , 5th edition Example 2. 18 Troy Long deposits a single sum of money in a savings account that pays 5% compounded annually. How much must he deposit in order to withdraw $2,000/yr for 5 years, with the first withdrawal occurring 3 years after the deposit? ( Hint: Draw the CFD first!) P = $2000(P|A 5%,5)(P|F 5%,2) P = $2000(4.32948)(0.90703) = $7853.94 P =PV(5%,2,,-PV(5%,5,-2000)) P = $7853.93
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Principles of Engineering Economic Analysis , 5th edition Simple Interest Cash Flow Diagram
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Principles of Engineering Economic Analysis , 5th edition Example 2. 18 P = $2,000(P|A 5%,5)(P|F 5%,2) P = $2,000(4.32948)(0.90703) = $7,853.94 P =PV(5%,2,,-PV(5%,5,-2000)) P = $7853.93
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Principles of Engineering Economic Analysis , 5th edition Example 2. 18 Excel P = $2,000(P|A 5%,5)(P|F 5%,2) P = $2,000(4.32948)(0.90703) = $7,853.94 P =PV(5%,2,,-PV(5%,5,-2000)) P = $7,853.93
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Principles of Engineering Economic Analysis , 5th edition Example 2. 19 Rachel Townsley invests $10,000 in a fund that pays 8% compounded annually. If she makes 10 equal annual withdrawals from the fund, how much can she withdraw if the first withdrawal occurs 1 year after her investment? A = $10,000(A|P 8%,10) A = $10,000(0.14903) = $1490.30 A =PMT(8%,10,-10000) A = $1490.29
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Principles of Engineering Economic Analysis , 5th edition Example 2. 19 Rachel Townsley invests $10,000 in a fund that pays 8% compounded annually. If she makes 10 equal annual withdrawals from the fund, how much can she withdraw per year if the first withdrawal occurs 1 year after her investment? A = $10,000(A|P 8%,10) A = $10,000(0.14903) = $1,490.30 A =PMT(8%,10,-10000) A = $1490.29
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Principles of Engineering Economic Analysis , 5th edition Example 2. 19 Rachel Townsley invests $10,000 in a fund that pays 8% compounded annually. If she makes 10 equal annual withdrawals from the fund, how much can she withdraw if the first withdrawal occurs 1 year after her investment? A = $10,000(A|P 8%,10) A = $10,000(0.14903) = $1,490.30 A =PMT(8%,10,-10000) A = $1,490.29
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Principles of Engineering Economic Analysis , 5th edition Example 2.22 (note the skipping) Suppose Rachel delays the first withdrawal for 2 years. How much can be withdrawn each of the 10 years? A = $10,000(F|P 8%,2)(A|P 8%,10) A = $10,000(1.16640)(0.14903) A = $1738.29 A =PMT(8%,10-FV(8%,2,,-10000)) A = $1738.29
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Principles of Engineering Economic Analysis , 5th edition Example 2.22 Suppose Rachel delays the first withdrawal for 2 years. How much can be withdrawn each of the 10 years? A = $10,000(F|P 8%,2)(A|P 8%,10) A = $10,000(1.1664)(0.14903) A = $1738.29 A =PMT(8%,10-FV(8%,2,,-10000)) A = $1738.29
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