I want help understanding the concepts , Thank you 2) You pay off a $200,000 loan at effective annual interest rate of 7% by making interest paymentsat the end of each year and paying off the principle in one lump sum at the end of 30 years.You will accumulate the $200,000 by making deposits at the end of each year into a sinking fundearning an effective annual interest rate of 8%. If the total yearly outlay is 1.25X each year for the first10 years and X for the next 20 years then find X.

The annual payment, denoted as P, represents the amount of money that needs to be deposited at the…

Answered: 2) You pay off a $200,000 loan at…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A geometric gradient that increases at f= 5% per year for 15 years is shown in the accompanying diagram. The annual interest rate is 10%. What is the present equivalent value of this gradient? AClick the icon to view the diagram for geometric gradient values. Click the icon to view the interest and annuity table for discrete compounding when i= 5 % per year. Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year. 4... The present equivalent value of the gradient is $ (Round to the nearest dollar.)
A3 help me solve this question without using tables in excel. An annual deposits of A1=$1,500 in a saving account is made for 6 years starting year 1. In year 9, a one-time deposit of $3,500 is made. In year 11, a one-time withdrawal of $2,500 is made. Then another series of annual deposits of A2 started for 7 years starting from year 12, increasing by $350 every year. If a one-time withdrawal of $900 was made in year 19 and the present worth of the whole amounts of deposits and withdrawals is $-20,500, what is the value of A2? If the whole life cycle is to be repeated forever with a life cycle of 19 years, what is the capitalized cost and the annual worth? Assume an interest rate of 6%.
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