CHE249H1 Lecture Notes - Lecture 8: Effective Interest Rate, Mansfield
1 Mar 2016
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20 years, no salvage value, interest rate of 4% per year. Pv concrete=300,000+14,000 (p / a ,5 ,20 )+0=300,000+14,000 12. 462=,468. 00. Pv =220,000+21,000 ( p/ a ,5 ,20)+35,000(p/ a , r8 ,2) Using r approximately equal 50%, we get this: Which should be equal to pv ( a/ p ,5 ,20)=pv 0. 08024=38,071. 31. A c earthen=220,000 ( a/ p ,5 ,20)+21,000+35,000 ( a / f ,5 ,8) Pv earthen=220,000+21,000( p / a ,5 , )+35,000(p/ a ,r8 , )=$ 713,298. 43. A c earthen=220,000 ( a/ p ,5 , )+21,000+35,000( a/ f ,5 ,8) F = 1000, n = 8 years, all semi-annual. P = 104, f = 100, cr = 5%, n = 6 years 3 months. Start at 6 years, 6 months out, then move to 6 years 3 months. Try 4% (as p is slightly higher than f, implying cr is higher than yield) Using the actual formulas for everything, we get =4. 49.
