Time Value of Money
Cost Analysis and Engineering Economy
Single cash flow analysis (5 questions)
Suppose you open a new savings account with an initial deposit of $100. The account pays 2% interest each year. If you do nothing:
Uniform cash flow analysis (7 questions)
Suppose you deposit $100 into a savings account at the end of each year for three years. The bank pays an interest of 2% each year.
Loan payments (5 questions)
Consider an annual payment of $21,215.84 over the next five years, with the first payment occurring one year from now. Suppose you are able to get interest of 2% per year on your savings.
General cash flow analysis (4 questions)
A father plans to save for his child’s university studies. In particular, he hopes to have $20,000 each year for four years 18 years from now. How much should he have now assuming that he gets 4% interest each year? We illustrate three approaches to solving this problem.
A note of thanks to Lucia Tara Stockmann for the development of this online class material.