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chpt4 - 4 (UPDATED) Justification and Applications of Work Cells

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4 views7 pages

chpt4 - 4 (UPDATED) Justification and Applications of Work Cells

Uploaded by

masrul nizam mahmod
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Chapter 4

JUSTIFICATION AND
APPLICATION OF
WORK CELL

Apply the concept if CIM in automation system


Why TIME?

Why is TIME such an important


element in your decision?

TIME allows you the opportunity to


postpone consumption and earn
INTEREST.
Types of Interest

 Simple Interest
Interest paid (earned) on only the original
amount, or principal, borrowed (lent).
 Compound Interest
Interest paid (earned) on any previous
interest earned, as well as on the principal
borrowed (lent).
Simple Interest Formula

Formula SI = P0(i)(n)
SI: Simple Interest
P0: Deposit today (t=0)
i: Interest Rate per Period
n: Number of Time Periods
SI = P0(i)(n)
Simple Interest Example
 Assume that you deposit $1,000 in an
account earning 7% simple interest for
2 years. What is the accumulated
interest at the end of the 2nd year?

 SI = P0(i)(n)
= $1,000(.07)(2)
= $140
Simple Interest (FV)
 What is the Future Value (FV) of the
deposit?
FV = P0 + SI
= $1,000 + $140
= $1,140
 Future Value is the value at some future
time of a present amount of money, or a
series of payments, evaluated at a given
interest rate.
Simple Interest (PV)
 What is the Present Value (PV) of the
previous problem?
The Present Value is simply the
$1,000 you originally deposited.
That is the value today!
 Present Value is the current value of a
future amount of money, or a series of
payments, evaluated at a given interest
rate.

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