Engineering Economics

 Engin Homework 1 & Help Sheet Assignment:Complete the problems using an Excel spreadsheet. Problem responses must contain all givens, equations, and the process in which the problem is solved. Each student is responsible for completing their own response to the problems.

1. State the present worth of the future payment of $9,450 five years from now at 7% compounded annually.

2. You have $7,450. You would really like that $7,450 to grow into $14,500 in the next five years so you can make a down payment on a new house. What compound interest rate would you need to receive to make your goal possible in five years?

3. Suppose you have the option of receiving either $6,500 at the end of six years or P dollars today. Currently, you have no need for the money, so you could deposit the P dollars into a bank account that pays 11% interest compounded annually. What value of P would make you indifferent in your choice between P dollars today and the promise of $6,500 at the end of six years?

4. State the total amount accumulated by a present investment of $9,000 in five years at 9% compounded annually.

5. Which of the following alternatives would you choose (having the highest value), assuming an interest rate of 10% compounded annually? a) Receive $2000 today. b) Receive $3500 three years from now. c) Receive $4000 six years from now.

6. You deposit $7,000 in a savings account that earns 9% simple interest per year. How many years will it take to double your balance? If, instead, you deposit the $7,000 in another savings account that earns 7% compounded yearly, how many years will it take to double your balance?

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Formatting: Text Size: 12-point size. Margins: 1’’ on all sides. Name Block:

Your Name TECH 452 –Engineering Economics

Title: “Homework 1.” Put this title on the first line of the document. Spelling/Grammar Checking: Remember to do your spelling and grammar checking before turning your assignments in. When doing the spelling/grammar checking keep in mind that some words such as mush and must, woods and words, or here and cow, will not be caught by either check. To correct these problems, you will need to proofread your work. Page Numbers: Any homework that has more than one page needs to have page numbers on it. Please place your page numbers on the bottom of the page. In MS Excel, use the footer selection and place the page number  in  the  bottomcenter  or  bottom right  of the page. Content: Problem Number: List each problem’s number on the left, placing a blank cell above it. State the Problem: Write the problem exactly as appears in the book immediately below the problem number. You will need to break long text up between cells so that you will stay with-in the printing boundaries of the page. State the Given: Skip one cell and write the word “Given:” Follow that with what is known from the problem. If the problem has multiple parts, place the letter of each part before the “Given”. State the Find: Skip one cell and write the word “Find:” Follow that with what the problem wants solved. If the problem has multiple parts, place each “Find” below each “Given”. State the Formula: Skip one cell and write the formula that you will be using. Be sure to place it inside quotation marks so that excel does not think that it is an active formula. State the Formula Values: In the next lower cell and write the formula that you will be using with the values placed into it. Be sure to place it inside quotation marks so that excel does not think that it is an active formula. Solve the Problem: In the next lower cell and write the formula that you will be using with the values placed into it.  Do not place   it inside of quotation marks , as this is where you place the active formula. Saving/Naming Your File: When you save your file make sure that your name and the project number are included in it. Example:                     YourName452HW1

Content Example: The following is an example of the format and contents using problem number 2.1 from Homework #2 assignment. 

Your Name
TECH 452 Engineering Economics
Homework #1
Problem 1
What is the amount of interest earned on $3,000 for five years at 9%
simple interest per year?
Given: P = $3,000, N = 5 years, and i = 9% per year.
Find: I
"=((iP)N)"
"=((9%*3000)*5)"
$1,350.00