Example:

If you had $2,000 now and invested it at 10%, how much would it be worth in eight years?
Sol.

F = P (F/P, i%n)
F=2000*2.143
= 4,287.18$

Example:
Calculate the principal that have been borrowed 5 years ago, which must be returned it as 5000$.
The interest rate simple was 10%. find the interest added to this principal during the 5 years.?

Sol.
P = F (P/F, i%, n) F5 =
P=5000*0.62 5000 $

= 3104.6$

0 1 2 3 4 5

1
Engineering economics Shang Asmat Mohammed
Example:
6
The international construction bank gives a dept. equal to 8.79*10 $ with an interest 8% for a
certain project which must be recovered in 10 years what is the annual payment that must be paid
to the bank?

Sol
A = P(A/P, i%, n)
6
6 p = 8.79*10
A =8.79*10 *0.149
6 0
= 1.3 * 10 $ 1 2 9 1
0

A= ?

2
Engineering economics Shang Asmat Mohammed