What will the balance the account the end the years
ISE 307, Term 153
ENGINEERING ECONOMIC ANALYSIS HW# 1 Solution
Due date: Wednesday, July 20
Q.1. 


Or 

P1 =$100
P2=150 (P / F, 10%, 2) = 150 (0.8264) = $123.96 P3=200 (P / F, 10%, 6) = 200 (0.5645) = $112.9
Q.2. 


Q.3. 

Q.4. 


Q.5. 

Q.6. 


Q.7. 

(a)Suppose that the price of oil is expected to be $120 per barrel for the next five years. What would be the present worth of the anticipated revenue trim at an interest rate of 10% compounded annually over the next five years?
Q.8. 


Q.9. 

Another Solution:
P1 = 40000 (P/F, i, 5) = 40000 (1+i)5
P2 = 4000 (P/A, i, 10) = 4000 [(1+i)101]/[i*(1+i)10] 40000 (1+i)5 = 4000 [(1+i)101]/[i*(1+i)10]