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Lecture 7

CHE249H1 Lecture Notes - Lecture 7: Interest Rate


Department
Chemical Engineering and Applied Chemistry
Course Code
CHE249H1
Professor
Yuri Lawryshyn
Lecture
7

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CHE374-2015F-Problem Set #6-Solution
Question #1:
Interest rate = 6%
a) Present worth = -$800 + $320(P/A,6%,6) = -$800 +$320(4.91732)
=$773.54
b) Future worth = $773.54 (F/P,6%,6) = $773.54* 1.4185 = $ 1097.29
c) $773.54* (1.06)4= $976.58
d) $773.54= x/(1.06) + 5x/(1.06)3 x =$150.45
Interest rate = 9%
a) Present worth = -$800 + $320(P/A,9%,6) = -$800 +$320(4.48592)
=$635.49
b) Future worth =$635.49 (F/P,9%,6) = $635.49* 1.6771 = $ 1065.79
c) $635.49* (1.09)4= $ 897.05
d) $635.49= x/(1.09) + 5x/(1.09)3 x =$132.99
Question #2: 15K 7K
Value = 15000 (P/A, 8%, 2) +7000(P/A, 8%, 3) (P/F, 8%, 2) = $50,710.71
Question #3:
=
A = 6K+0.75K(A/G,9%,7)= 6+0.75(2.65740)=$ 7,993.05
?
6K
โˆ†= 0.75๐พ/๐‘ฆ๐‘Ÿ
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