Engineering Answers

A debt of P15,000 with interest at 5% compounded monthly is to be amortized by equal monthly
payments over the next 3 years, the first due next month. Find the monthly payment and construct an
amortization schedule.

Determine the capitalized cost of a nuclear power plant which requires P20,000,000 for original
construction; P350,000 at the end of every year for the first 5 years and then P200,000 each year
thereafter for operating expenses, and P1,000,000 every 3 years for replacement of equipment with
interest at 16% per annum.

A new engine was installed by a cement plant at a cost of P800,000 and projected to have a useful life
of 25 years. At the end of the useful life, it is estimated to have a salvage value of P40,000. Determine
its capitalized cost if interest is 14% compounded annually.

Determine the capitalized cost of a structure that requires an initial investment of P3,000,000 and an
annual maintenance of P500,000. Interest is 18%.

What will be the amount of money invested today at 10% interest can provide the following scholarships:
P 20,000 at the end of each year for 5 years, P 40,000 for the next 5 years, and P60,000 thereafter?

Vu Technology Corp just purchased new disaster simulation software for $10,000 now and having
annual payments per year for 10 years starting from now for annual upgrades. If the interest rate is 2%
per month
1) What is the annual worth of the payments?
2) What is the worth of the payments in the 10th year?

An engineering technology group just purchased new CAD software for $5000 now and annual
payments of $500 per year for 6 years starting 3 years from now for annual upgrades. If the interest
rate is 8% per year,
1) What is the present worth of the payments?
2) What is the worth of the payments in the 6th year?

Formasa Plastics has major fabrication plants in Texas and Hong Kong. The president wants to know
the equivalent future worth of $1 million capital investments each year for 8 years, starting 1 year from
now. Formasa capital earns at a rate of 14% per year.

How much money should you be willing to pay now for a guaranteed $600 per year for 9 years starting
next year, at a rate of return of 16% per year?

A businessman borrows P20,000 for his operations. One financial institution is willing to lend him money
for one year at a discounted interest rate of 10.5% per annum. What is the effective rate?