Chapter 5
Present
Worth
5-1
Emma and her husband decide they will buy $1,000 worth of utility stocks beginning one year
from now. Since they expect their salaries to increase, they will increase their purchases by $200
per year for the next nine years. Wh

Chapter 3
Equivalence
A Factor Approach
3-1
If you had $1,000 now and invested it at 6%, how much would it be worth 12 years from now?
Solution
F = 1,000(F/P, 6%, 12) = $2,012.00
3-2
Mr. Ray deposited $200,000 in the Old and Third National Bank. If the ba

Material Covered
Test #3 Review
INEN 303
Sergiy Butenko
Industrial & Systems Engineering
Texas A&M University
Breakeven Analysis: Single Project
The breakeven point for a variable X is
expressed in terms such as units per year or
hours per month.
Let QBE,

5.2 Compound Interest
(Solutions are at the end)
Simple interest is normally used for loans or investments of a year or less. For longer terms,
compound interest is used. With compound interest, interest is charged (or paid) on interest as
well as princip