Name : NOR AIN FATIHAH BT NOR AZLAN

Matrix No : 261715
Date : 26/10/2020

EXERCISE 1 CHAPTER 2

1. Look up the numerical value for the following factors from the interest table.
a. (P/F, 6%, 8) = 0.6274
b. (A/P, 10%, 10) = 0.16275
c. (A/G, 15%, 20) = 5.3651
d. A/F, 2%, 30) = 0.04116
e. (P/G, 35%, 15) = 7.5974

2. How much Sykt Acv afford to spend now on an energy management system if the
software will save the company $21,300 per year for the next 5 years? Use an interest
rate of 10% per year.
P = A ( P/ A, I, n)
= 21,300 ( P / A , 10% , 5 )
= 21,300 ( 6.1446)
= $ 130,879.98

3. How much money would be available in year 10 if $8000 is deposited each year in years
4 through 10 at an interest rate of 12% per year?
F = A ( P/ A, I, n)
= A( F/ A, 12% , 7)
= 8000 ( 10.0890)
= $ 80,712
 4. Find the present worth in year 0 for the cash flows shown using an interest rate of 8% per
year.

Step 1.

Pg = F (P/ F, I , n)
= $ 2000 ( P/ F, 10%, 8)
= $ 2000 (0.4665)
= $ 933

Step 2.

P a= A(P/A, I, n)
= 5000 ( P / A, 10%, 8)
= 5000 (5.3349)
= $ 26,674.5

Pao = F ( P / F,I,n)
= $ 26,674.5 ( P / F, 10% , 2)
= $ 26,674.5 ( 0.8264)
= $ 22,043.81

PT = Pg + Pa
= $ 933 + $ 22,043.81
= $ 22,976.81