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AIN SHAMS UNIVERSITY FACULTY OF ENGINEERING New P h Engineering (Freshmen) -Fall 2009 Engi Economics (HUMN240) 2. Find the numerical value of the following factors by (a) interpolation and (b) using the appropriate formula: 1XF/P,6yo,23). ii) (P/A,16.3%,15) iii) (P/ G,12.7yo,20) ((iu)Iayc,23o ,3o) t.R\-, - \.-/ 3. How much money could you afford to spend in lieu of spending $40,000 five years from now if the interest rate 12Yo per year. 4. What is the future worth in25 years of$ 3000 at t : 0, $ 7500 att: 4 years, and $ 5200 at t : 12 years if the interest rate is 1.5o/o pet year. +, 5. If you are paying,g{f a loan of $10,000 by making equal year-end payments for 5 years, how much principle reduction will you get in (a) the second payrnent and (b) the last payment if the interest rate on the loan is 77Yo per year. 6. The receipts from certain mineral rights have been following a decreasing gradient for the past 4 years. The first receipt was $10,500 and the second one was $9800. (a) In how many years from now will the income stream go to zero? (b) What is the future worth (in the last year money is received) of the remaining series of receipts at an interest rate of llo/o per year. or the cash flow shown below, determine the value G that will make bquivalent annual worth equal to $800 at an interest rate of 20o/o per present value uSing interffra? I6o/op.t ytEil- - ear.
