Qatar University

College of Engineering
GENG 360: Engineering Economy

Fall 2009

Assignment 1

Due Date: October 18, 2009 (SUN) at 12:00 PM Submission to Eng. Saads Mailbox

1. At an interest rate of 8% per year, $10,000 today is equivalent to how much

(a) 1 year from now and (b) 1 year ago? (1.16)

2. How long will it take for an investment to double at 5% per year (a) simple
interest and (b) compound interest? (1.23)

3. What are the values of the engineering economy symbols P, F, A, i, and n in

the following Excel functions? Use a ? for the symbol that is to be
determined. (1.29)
a. FV(7%,10,2000,9000)
b. PMT(11%,20,14000)
c. PV(8%,15,1000,800)

4. Construct a cash flow diagram for the following cash flows: $10,000 outflow
at time zero, $3000 per year outflow in years 1 through 3 and $9000 inflow in
years 4 through 8 at an interest rate of 10% per year, and an unknown future
amount in year 8. (1.39)