Question

MECE 2361 - Introduction to Mechanical Design For this assignment, you will use either a spreadsheet program or Matlab to compute and compare the results of different solutions to the same problem. In addition to turning a summary of the results requested, you should also turn in your spreadsheet or Matlab code. If using spreadsheets, please turn in a single workbook with pages labeled: Prob#_PartX If using Matlab, you may solve multiple parts of the same problem in the same M-file. Please turn in your M-files named: Prob#_PartXYZ 1. Consider the comparison of different payment plans that we discussed in lecture: $10,000 is borrowed at 10% a year interest for five years. • Plan I: pay only the interest at the end of each year Plan II: make no payment for five years Plan III: pay interest plus 20% of the initial principal at the end of each year Plan IV: Pay interest plus 20% of the remaining principal at the end of each year Plan V: Pay a fixed amount of $2638 at the end of each year • a) Solve for the future value if Plan II is selected using the Interest Factors Table b) Solve for the value of the principle at the end each year if Plan II is selected using a spreadsheet or Matlab. Show that the principle at the end of year 5 is the same as the value determined in part a) c) For Plan III, use a spreadsheet or Matlab to solve for the payment AND the remaining principle at the end of each year. Determine the total payment made over the 5 years d) For Plan III, use a spreadsheet or Matlab to solve for the payment AND the remaining principle at the end of each year. Determine the total payment made over the 5 years

Answer 1

Answer- (a)
Amont borrowed	10000
Rate of interest	10%
Time	5 yrs
Future value of $10,000 to be paid at the end of 5th year
	=PV(1+rate of interest)^ time
	=10,000(1+0.10)^5
	= $ 16,105.10
Answer- (b)
Statement showing Principle at the end of each year -
Year	Principle at beginning of year	Rate of interest	Interest	Principle at the end
1	$10,000.00	10%	$ 1,000.00	$     11,000.00
2	$11,000.00	10%	$ 1,100.00	$     12,100.00
3	$12,100.00	10%	$ 1,210.00	$     13,310.00
4	$13,310.00	10%	$ 1,331.00	$     14,641.00
5	$14,641.00	10%	$ 1,464.10	$     16,105.10
Answer -(c )
Statement showing Interest and amount repaid every year
Year	Principle at beginning of year	Rate of interest	Interest	Amount Repaid= interest+$2000	Balance
1	$10,000.00	10%	$ 1,000.00	$       3,000.00	$ 8,000.00
2	$   8,000.00	10%	$    800.00	$       2,800.00	$ 6,000.00
3	$   6,000.00	10%	$    600.00	$       2,600.00	$ 4,000.00
4	$   4,000.00	10%	$    400.00	$       2,400.00	$ 2,000.00
5	$   2,000.00	10%	$    200.00	$       2,200.00	$             -
Total			$ 3,000.00	$     13,000.00
Total Payment made over 5 years is $13,000 of which interest component is $3,000.
Answer- (d)
Same as answer (c )