NAME : SETYO AJI IMAM MALIKI

STB : F11116016

Engineering Economics

1. You have just purchased a house 250 million rupiah. You will sell the house when the selling
price is doubled. If you expect the price to increase 18% per year, how long do you expect to
wait before selling the house? (15)

Answer :

Use formula “rule 72” where P equals 250 million rupiah and i is 18%. So,-

72
n=
i
72
n=
18
n=4

So, I need 4 years to sell that house.

2. How much the price of truck per unit in the next two years due to the influence of inflation of
8% per year. The current price is 500 million. Please draw the cash flow diagram. (15)

Answer :

Use future value formula

F = P(F|P, I, n)

F = P(F|P, 8%, 2)

P = 500 Million rupiah

F = 500 (1+0.08)2

= 583.2 Million

So, the price in the next two years is 583.2 Million

F = 583.2 Million Rp

0 1 2

n = 2 years

P = 500 Million Rp
3. If you want to withdraw 50 million Rupiah at the end of four years, how much should you
deposit now in an account that pays 10% interest compounded annually? Please draw the cash
flow diagram (15).

Answer :

Use present value formula

F = 50 Million

P = F(P|F, i, n)

P = F(P|F, 10%, 4)

P = 50.000.000(0.683)

P = 34.150.000

So, I should deposit Rp,-34.150.000 to the account

F = 50.000.000 Rp

0 1 2 3 4

i = 10% n=4

P = 34.150.000 Rp

4. Dimas Kanjeng offers any followers who wants to join in his Padepokan for amount of 5 million
rupiah and the followers can obtain gain after 5 years about 50 million rupiah. How much
equivalent interest per month is the follower to get 10 times money after five years or 60
months? Please draw the cash flow diagram (15)

Answer :

Use future value method

F = P(1+i)n

F
i =
√
n

P
-1
 50
i =
√
5

5
-1

5
i =√ 10 - 1

i = 0.584% per year

then divide by 12 because 1 year equal to 12 months

i = 0.584% / 12

i = 0.039% per month

F = 50 Million Rupiah

i = 0.584% per year

0 1 2 3 4 5

n = 5 year

P = 5 Million Rupiah

5. The price of the new motorcycle for ojek driver is 15 million Rupiah. The down payment is 500
thousands rupiah and the instalment for 4 years with interest 8% per year. The income of the
driver in a day is 200 thousands rupiah with outcome for the gasoline is 50 thousands rupiah per
motorcycle unit (The assumption is 300 days per years). The maintenance price per year is 8
million/unit and the investor bought 10 units. How much the net income in the end of 4 years if
all of the motorcycle being sell 5 million per unit? (40)
Answer :
A = P ( A|P, i , n)
A = 14.500.000 (A|P, 8% , 4)
A = 14.500.000 (0.302)
A = 4.379.000 Rp

Then times 10 because there’s 10 units so A is 43.790.000 Rp

The income is 200.000 rp and the outcome is 50.000. So their money it will be 150.000.
After that times with 300 days and times again with 4 years. So it’ll be 180.000.000 Rp. Times
with 10 units it’ll be 1.800.000.000 billion
If the maintenance is 8 million per year, times with 4 years and times again with the units. It’ll be
320.000.000 Rp.
So, count all of the price

180.000.000.000 – 320.000.000 = Rp.1.480.000.000