Time Value of Money
Week 1
Professor C. S. Park
Fundamentals of Engineering Economics
Copyright 2005
Chapter 2
Time Value of Money
Interest: The Cost of
Money
Economic Equivalence
Interest Formulas
Single Cash Flows
Equal-Payment Series
Dealing with Grad

Economic Equivalence
Week 2
Professor C. S. Park
Fundamentals of Engineering Economics
Copyright 2005
Economic Equivalence
What do we mean by economic
equivalence?
Why do we need to establish an economic
equivalence?
How do we establish an economic
equiva

EST 392-01, HW #5
Cheong, Holy 109142795
Ch. 3- 3.1, 3.2, 3.6, 3.19
3.1) A loan company offers money at 1.25% per month compounded monthly.
a) What is the nominal interest rate? 1.25% x 12 = 15%
b) What is the effective annual interest rate?
ia = (1 + r/m

109142795
EST 392-01, HW #4
Cheong, Holy 109142795
2.35) What is the future worth of each given series of payments?
a)
b)
c)
d)
2.36) What equal annual series of payments must be paid into a sinking fund in order to
accumulate each of the following given

EST 392-01, HW #10
Cheong, Holy 109142795
Ch. 9: 9.2, 9.9, 9.10, 9.18, 9.26, 9.29
9.2) 2,300(1+r) 3 where r is the rate of return that the 2,300 could earn if the machine were sold.
9.9a) Straight line depreciation method: I = $130,000, N = 5 years, S = $

109142795
EST 392-01, HW #2
Cheong, Holy 109142795
Chapter 2: 2.2, 2.3, 2.5, 2.6, & 2.13
2.2) You deposit $3,000 in a savings account that earns 8% simple interest per year. How many
years will it take to double your balance? If instead, you deposit the $

EST 392-01, HW #6
Cheong, Holy 109142795
Chapter 5: 5.2, 5.4, 5.7, 5.13a, 5.21
5.2) a) Identify the cash inflows over the life of the project.
30,000 x 2 = 60,000
34,000 x 2 = 68,000
3,500 x $25 = 87,500
Total inflow = $215,500, for 8 years = $215,500 x 8

EST 392 Exam
25 questions: T/F and multiple choice
Bring calculator and pencils
Exam focuses on Chapters 1, 2, 3, 5
Review
Ch. 1 Page
Section
6
Steps in Making Economic decisions
9
Difference in engineering and economic decisions
12
Engineering projects a

EST 392
Spring 2015
HW #1-12
HW #1
1st day of class
or
late HWs Due Mon 2/2
Investigate and write up approximately one page on who Professor (James) Moriarty was
and his significance to literature. PS it is not about me.
HW #2
CHAPTER 2
2.2, 2.3, 2.5, 2.6

EST 392-01, HW #3
Cheong, Holy 109142795
Chapter 2: 2.23, 2.25, 2.27
2.23) A project is expected to generate a cash flow of $2,000 in year 1, $800 in year 2, and
$1,000 in year 3. At an interest rate of 10%, what is the maximum amount that you could inves

EST 392-01, HW #1
Cheong, Holy 109142795
The Napoleon of Crime
When Sir Arthur Conan Doyle introduced Sherlock Holmes, a brilliant detective, he also
had another genius creation, his archenemy. Nicknamed the Napoleon of Crime by Holmes,
Professor James Mo

TimeValueofMoney
Week 1
Professor C. S. Park
Fundamentals of Engineering Economics
Copyright 2005
Chapter2
TimeValueofMoney
Interest: The Cost of
Money
Economic Equivalence
Interest Formulas
Single Cash Flows
Equal-Payment Series
Dealing with Gradient
Se

AMS 361: Applied Calculus IV
Solutions to Homework 4
Assignment Date:
Tuesday
Collection Date:
Tuesday
Grade:
Each problem is worth 10 points.
Email Address:
sbu.ams361.f15@gmail.com
Problem 4.1 (Cf: Problem 1.6.6 on P. 70): The following DE is of, at lea

Chanyeop Park
109555333
EST 392.30
HW#1
Chapter 1
1.1
Four essential elements
Cash flows
Times of occurrence of cash flows
Interest rates for time value of money
Measure of economic worth for selecting an alternative
1.10
P=900,000
i=12%
1st year interest

EST 392 ENGINEERING AND MANAGERIAL
ECONOMICS
Thu 5:30 8:20PM Room: Javits 103
Instructor: Professor Moriarty,
Harriman Hall Room 339 Ph# 632-1898
Office Hours:
Fall Semester 2016
Email: kevin.moriarty@sunysb.edu
COURSE OBJECTIVES:
This is a course in Engi

Kraig Koylass
EST 392-01
Kevin Moriarty
Significance of Professor James Moriarty in Contemporary Literature:
Professor James Moriarty is a fictional character in Sherlock Holmes. This is a series as
written by Sir Arthur Conan Doyle. Moriarty is alleged t

Pedro Arias
110420370
HW#6
Problem 7.3
8% * 4 (12/3) = 32%
Problem 7.7
0=3.1+2(.2)(P/ A , i, 10)
3.1=.4 ( P/ A ,i , 10)
(P/ A , i, 10)=7.75 0
*i is in-between 4% and 5% based on the table, but closer to 5%*
1+i
i
= 7.750 i = 4.9%
(1+i)n1
Problem 7.20
0 =

Pedro Arias
EST 392
March 28th, 2016
HW #8
Problem 9.8
B=900,000(1.5) 900,000=450,00 0
C=300,000+25,000( P/ A , 6 , 20)
300,000+25,000(11.4699)
586,748
B
=450,000 /586,748=0.77
C
Problem 9.10
B=90,000
D=10,00 0
C=750,000( A/ P , 8 , 20)+ 50,000
750,000

Pedro Arias
110420370
EST 392
HW #5
Chapter 5 & 6
Problem 5.9
a)
b)
46,308=X 7000
( PA , 12 , 5)+ 20,000 ( FP ,12 , 5)
X7000(3.6048)+20,000(0.5674)
$ 32,42 2
Problem 5.13
PV =155,000 3000(P/ A , 10 , 30)
PV =$183,281
By the 250mm line because it still co