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ESci131n Assignment 11 Class No.12 Class Sched 3-4.30 MW
ESci131n Assignment 11 Class No.12 Class Sched 3-4.30 MW
ESci131n
Engineering Economy
Assignment 11
Coverage: Perpetuity and Arithmetic Gradient
Deadline: 6pm, Sunday, 13 June 2021
Class Number 12
Class Schedule 3 - 4:30 PM
Solve the following problems. Present a complete and comprehensive solution following
the traditional format (given, required and solution) using the required units.
Solutions/final answers not using the correct units will not earn points. Truncated or
“short-cut” solutions will not be accepted. Construct the correct cash flow diagram for
every problem. Round off your final answer to two (2) decimal places. Enclose your final
answer with a rectangle otherwise it will not be credited.
1. What is the present value of a perpetuity of P300,000 payable quarterly if money is worth
4% semi-annually? (3pts)
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2. Andrea borrowed P75,000 at 13% compounded annually which she will repay in five year.
If each successive payment is P5,000 less than the previous payment, how much will be her
first and last payment? (3pts)
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