Problem Of The Piazza D Italia Cultural Studies Essay

Problem Of The Piazza D Italia Cultural Studies Essay With public space or areas we usually mean roads, streets, squares, beaches and parks, but also free accessible government buildings and public institutions are part of public space. The moment public areas have been formed they have been a platform for gathering people and groups from different origins. It is a place where people can meet socially and exchange ideas. Public spaces play a social as well as a political role in society and are the mirror of this society. (Carr et al.,1992) Creating such places has always been a point of discussion from the beginning. Especially since the 20th century public areas went through major changes. It is therefore that their role and existence in the future are in the 21st century more than ever a point of discussion. These discussions have started with the arrival of modern times. In this period there have been realized different public spaces which each in their own way have given a contribution to these discussions. There are some creations which are very successful, but also some projects which are less prosperous. Within modern time we can distinguish different periods of style and of movements, of which the post-modern style is a good example. Piazza d Italia in New Orleans, Louisiana, designed by Charles Moore, is such a public space project of post-modernism. From the beginning until the very present there have been different discussions in architectural society as well as in public circles about the role of the Piazza dItalia as a public area. The Piazza knows some restrictions within the way the design has been realized, which causes that people do often feel that the square cannot be experienced as a public space. In this essay there will be researched what causes the hidden problem of the Piazza d Italia. The square often gives an isolated and estranged impression toward its users. The reason for this can have different causes. That is why it is important to research with this essay why en how the Piazza gives the impression of isolation and strangeness and also why the visitors do not experience this square as a real public space. Ultimate goal is to find out on which parts there have been discussions in the past and, more important, during the post-modernism period and if these discussions are still up to date with the present 21st century. The structure of this essay is as follows: within this research it is important to know what postmodern architecture really means. In the first part we will get into detail by looking at the beginning of this period, the characteristics and to what extent this period differs from the modern architecture. The second part will then describe the Piazza d Italia. First of all we will look at the ideology and ideas of Charles Moore about its role as a public space within society, referring to his essay: You Have To Pay For The Public Life from 1965. The next step is describing the original design of the Piazza and subsequently the most recent result of the design. In the third part of the essay we will, according to the book Architectural Positions, compare the recent Piazza d Italia with the various themes and essays as written by different architects. We will look into the differences and similarities between the Piazza dItalia and the theories in the book Architectural Positions. In the final part of the essay there will be the conclusion which will summarize the result of this essay and where the conclusions about the problem of the Piazza dItalia will be designated. Postmodernism In this part of the essay we will look into the meaning of postmodernism as a style within architecture. Also it is important to know how postmodernism has taken shape, its charactistics and in what respect it differs from modern architecture. While answering these questions we will use the book Architectural Position and the Western history of architecture. Postmodernism is a style within the architecture which has formed around 1960 as a response to modernism. Modernism is characterized by very straight, functional designs, without any ornament. According to reviewers this led to a certain extent of uniformity. Postmodern architecture however characterizes itself by its free shapes, fanciful details and references to the past. Postmodernism is since the eighties on the rise and has an important position within the modern-day architecture. According to the Dutch philosopher Rene Boomkens there are four historical and philosophical stages of modernity which have eventually have led to postmodernism: The first one starts in the mid-nineteenth century, when new inventions, scientific breakthroughs, and the rise of industry inspired amazement, but also a distinct sense of ephemerality (Avermaete et al., 2009). The second stage, between the two world wars, the liberating and progressive potential of modernity was strongly emphasized. Scientific and technological advances inspired profound confidence in the perfectibility of society and the progress of culture generally meaning Western culture. Modernity was experienced as distant from the past and aiming at the future (Avermaete et al., 2009). The third stage of modernity had a more diffuse character. It showed both regressive and progressive tendencies and reached its apex in the late 1960s, with the sexual revolution, and the Paris protest of May 1968 and the Amsterdam Provo movement. One key feature of this stage was the emergence of the welfare state and mass culture, resulting in growing economic prosperity and social mobility, but also in an increasing process of individualizations (Avermaete et al., 2009). The fourth stage is postmodernity. The difference between modern and postmodern architecture can essentially be reduced to the use of ornaments, embellishment, local specialties and rich details from which the modern architecture has taken a distance. But we do see them in postmodern architectureà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ Piazza d Italia Regarding this research we will take a look in this chapter at the Piazza dItalia in New Orleans, designed by postmodern architect Charles Moore. In his essay: You have to pay for the public life, 1965, Charles Moore starts a discussion about the role of Disneyland as a public space. Charles Moore describes Disneyland as a very important and successful place, offering possibilities to the changeability of public environment. He describes how in this fantasyland full with dreams, stories, small and large dramas, visitors get the possibility to recreate, watch, and be watched in this area. Also Charles Moore deems the success of Disney is due to the fact that the designers of Disneyland used historical buildings and public places to recreate a world with which visitors can identify themselves and a space which they can create as their own. The fact that visitors have to pay a fee at the entrance to get into Disneyland, guarantees that Disneyland as public space will stay clean and tidy and that there is no place for junks and vagabonds, according to Charles Moore in his essay. Also Charles Moore discusses in his essay the rise of privatizing modern American cities, like floating groups of islands, which can only be reached by car, and how these cities miss the re-imagination of the public qualities which Disneyland creates. During the seventies Charles Moore tries to learn a lesson from his admiration for Disneyland and to use the positive qualities in his design for Piazza d Italia in the centre of New Orleans in America. Piazza dItalia is an urban public square in the centre of New Orleans, Louisiana in the United States of America. It has been designed in 1978 as a social gathering centre for the Italian community, which lived there in large numbers during the seventies. Charles Moores design consisted of a city block which contained an already existing high office tower and around this block he designed a single-floored building where different activities, publicly as well as commercially attached to the American Italian community, were housed . In the middle of this building there was a round square with lots of decorative motives and ornaments, with a wide range of influences from Egyptian to Art Deco. From the design we can easily conclude that Charles Moore, like in Disneyland, uses historical references to stimulate a feeling of re-imagination with its visitors. Already from the beginning Piazza dItalia, as an urban public space, was confronted with problems regarding further developments. It appeared that it was impossible to find public or private investors who would be prepared to pay for further development and realization of the square. The result of this shortcoming of investors led to a totally different Piazza dItalia of the year 2012 than was meant by the original design, because only a part has been realized of what Charles Moore has designed. This square consists of a revolving plateau with tiles in different shades of grey, light and dark, which like an amphitheatre draws the attention to the fountain, forme d as in an Italian landscape, surrounded by bright coloured concrete pillars. Furthermore the square holds a belfry as an entrance at the south side and at the north side there is a passage which reminds of a keyhole. The square is located at the foot of the office building and is surrounded by streets and parking places. As a result of the unfinished state of affairs the Piazza dItalia is also known to be named the first postmodern ruin. Themes In this chapter the most recent result of the Piazza d Italia will be criticized and be searched according to a few themes from the book Architectural Position combined by Tom Avermate, Klaske Havik and Hans Treeds. As described in the introduction, Piazza dItalia gives an aliented and isolated feeling in regard to its environment and this results in that people do not feel it as a real public space in which one can recreate. To find out what the problem is the Piazza will be discussed and compared on the basis of several themes from the book Architectural position. The first theme is the definition. The essay of Adriaan Geuze will be reviewed and there will be made a comparison between the ideology of public space by Adriaan Geuze with the Piazza dItalia and in what ways there can be found similarities. Adriaan Geuze writes in his essay Accerating Darwin that Public space must challenge, provoke and disorient, he argues that only when the users of urban spaces are given an active role and can make spaces in the city their own, its possible to speak of a significant urban experience, a real public sphere. In this essay Adriaan Geuze describes the Maasvlakte near Rotterdam to explain his conviction about the definition of public space. The Maasvlakte is an industrial area and as such part of the port area of Rotterdam. This area has been described by Geuze as an unprogrammed public space which gives its users the opportunity to recreate and to make the space their own. This withstanding the fact that this area never was meant to be recreational, but is actually in use by industrial factories and warehouses with a lot of heavy truck traffic. According to Adriaan Geuze the Maasvlakte is the ultimate public space for its users because they are totally free to use the space in their own way, since they are not restricted and isolated by defined and assigned spaces. Also Adriaan Geuze says in his essay that ÃÆ' ¯nterventions in public space, or rather, in the public landscape, should no longer be focused on generating greenery, the real challenge is to create space and textures for city dwellers to colonize in their turn. Nature can play a role in this but is not a priori the main role. If we should make a comparison between the essay of Adriaan Geuze and the Piazza dItalia in its present situation, the conclusion can be made that the Piazza does not suffice at all to the ideology and ideas of Adriaan Geuze. The Piazza is too programmed because it is surrounded by parking lots and office buildings. Furthermore the square itself makes a statement with its appearance. Therefore there is no freedom for visitors to create their own and to recreate. If the square had been developed according to the first design of Charles Moore, than indeed it would have given this space, combined with surrounding activities. This would have given visitors the feeling of freedom. The square would have been surrounded by locations and activities, which would have strengthen the picture of an Italian oasis in the busy American grid structure. A place to go to happily, escaping the city. Also Adriaan Geuze states that nature itself can help with improving the qualities of public space. However, with the Piazza we can establish that, while the square is unfinished, there is no way of using nature to embellish the space. The second theme is Monumentality for which we use the essay The Monumentally Informalby James Stirling, 1984. In this essay Stirling connects the question of monumental to a buildings ability to communicate with larger social groups. Convinced that a public building should be monumental as well as informal and populist, Stirling categorizes his realized projects in two terms: abstract and the representational. Abstract is being the style related to modern movement and the language derived from cubism, constructivism, the Style and all the ism of the new architecture. Representational is being related to tradition, the vernacular, history, recognition of the familiar and generally the more timeless concerns of the architectural heritage. When comparing the Piazza dItalia with the vision of Stirling in his essay, one can conclude that it is better to place the Piazza in the category representational. The square refers in an exaggerated way to historical references and traditions, while the category abstract is totally absent. The absence of the Abstract is maybe a reason that the square is no t being experienced as a modern monument, because it simply does not have its own character in which one can recognize its era. Instead we recognize the square more or less as a historical ruin. Historical ruins draw attention to the visitors, because they have a story to tell and their own rich history. Generally ruins are an attraction as such and are public places for which one has to pay to visit, like Charles Moore describes in his previously mentioned essay Disneyland. However, as a ruin Piazza dItalia sadly misses its back-up story and history, so it cannot be an attraction in this relation. Conclusion In the context of this essay the question has been made why the Piazza dItalia leaves such an isolating and estranged impression, causing it not to be a public space experience. In this conclusion it will be emphasized that this essay is directed to the most recent result and not to the original design of Charles Moore. In the three parts of this essay there has been research to the various opinions and ideas of other architects to be able to answer the research question. As a result of this research there can be concluded that the reason why the square is not a success, can be related to the fact that the square is a strange element within an urban environment, with contrasting contexts. We can also conclude that the square is a by all means a presence because of its image and looks, without possibilities for visitors to recreate and make the space their own. As James Stirling describes the role of public buildings in his essay, a public space should be abstract as well as having av ailable representative qualities. The fact that the square looks like a ruin, without any associated (historical) characteristics, leads to alienation. Furthermore the square presents many historical references, which are completely out of context and are clearly unfinishedà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. The English architectural critic Charles Jencks pointed out that the quality of the square resided in the fact that it appealed simultaneously to at least two groups: to architects and an engaged minority that are concerned with architectural problems, but also to the broad public or visitors that are interested in questions of comfort, of traditional building methods and lifestyle. This combination of popular and specialist elements and images were the ideal recipe to reconcile the tension between the architect and the users of public space. AVERMAETE, T., HAVIK, K. TEERDS, H. 2009. Introduction. In: AVERMAETE, T., HAVIK, K. TEERDS, H. (eds.) Architectural Positions. Amsterdam: SUN

Prejudice in To Kill a Mockingbird Essay -- essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  In the world people are always preconceived based on who they are or what they look like. Even though it isn’t as big of a problem in some areas as in others, we need to fight it. If we don’t then it will continue to get more serious and at times lead to death. In Harper Lee’s To Kill a Mockingbird, Alexandra tells her niece that she can’t play with a schoolmate simply because of his class. â€Å"‘You can scrub Walter Cunningham till he shines, you can put him in shoes and a new suit, but he’ll never be like Jem†¦Because—he—is—trash.’† (224). This prejudiced state of mind is the foundation for the plot events of the novel. By way of experiences, a young girl, Scout Finch, must learn about the part prejudice plays in the everyday life of Maycomb County. Through settlement patterns, justice, and social stratification Harper Lee reveals the ways of prejudice. The first instance of prejudice, settlement patterns, greatly affects how people of Maycomb are prejudged, not just where they lived, but also where they dwelled. The Ewells are considered the lowest class of Maycomb, aside from the blacks, which is shown by the fact that they live at the edge of the town, right next to the black people. â€Å"‘He would show me how where and how they lived. They were people, but they lived like animals’† (30). The author describes where people live as a sort of divider among them, the Ewells not only live near the blacks, but also right next to the garbage dump. Not only was the location of on...

Engineering Economics

Eng ineeri ng Economy Third Edition Leland T. Blank, P. E. Department of Industrial Engineering Assistant Dean of Engineering Texas A & M University Anthony J. Tarquin, P. E. Department of Civil Engineering Assistant Dean of Engineering The University of Texas at EI Paso McGraw-Hill Book Company New York S1. Louis San Francisco Auckland Bogota Caracas Colorado Springs Hamburg Lisbon London Madrid Mexico Milan Montreal New Delhi Oklahoma City Panama Paris San Juan Silo Paulo Singapore Sydney Tokyo Toronto 4 Level One 1. Define and recognize in a problem statement the economy symbols P, F, A, n, and i. 1. 6 Define cash flow, state what is meant by end-of-period convention, and construct a cash-flow diagram, given a statement describing the amount and times of the cash flows. Study Guide 1. 1 Basic Terminology Before we begin to develop the terminology and fundamental concepts upon which engineering economy is based, it would be appropriate to define what is meant by engineering economy . In the simplest terms, engineering economy is a collection of mathematical techniques which simplify economic comparisons. With these techniques, a rational, meaningful approach to evaluating the economic aspects of different methods of accomplishing a given objective can be developed. Engineering economy is, therefore, a decision assistance tool by which one method will be chosen as the most economical one. In order for you to be able to apply the techniques, however, it is necessary for you to understand the basic terminology and fundamental concepts that form the foundation for engineering-economy studies. Some of these terms and concepts are described below. An alternative is a stand-alone solution for a give situation. We are faced with alternatives in virtually everything we do, from selecting the method of transportation we use to get to work every day to deciding between buying a house or renting one. Similarly, in engineering practice, there are always seveffl ways of accomplishing a given task, and it is necessary to be able to compare them in a rational manner so that the most economical alternative can be selected. The alternatives in engineering considerations usually involve such items as purchase cost (first cost), the anticipated life of the asset, the yearly costs of maintaining the asset (annual maintenance and operating cost), the anticipated resale value (salvage value), and the interest rate (rate of return). After the facts and all the relevant estimates have been collected, an engineering-economy analysis can be conducted to determine which is best from an economic point of view. However, it should be pointed out that the procedures developed in this book will enable you to make accurate economic decisions only about those alternatives which have been recognized as alternatives; these procedures will not help you identify what the alternatives are. That is, if alternatives ,4, B, C, D, and E have been identified as the only possible methods to solve a Particular problem when method F, which was never recognized as an alternative, is really the most attractive method, the wrong decision is certain to be made because alternative F could never be chosen, no matter what analytical techniques are used. Thus, the importance of alternative identification in the decision-making process cannot be overemphasized, because it is only when this aspect of the process has been thoroughly completed that the analysis techniques presented in this book can be of greatest value. In order to be able to compare different methods for accomplishing a given objective, it is necessary to have an evaluation criterion that can be used as a basis Terminology and Cash-Flow Diagrams 5 for judging the alternatives. That is, the evaluation criterion is that which is used to answer the question â€Å"How will I know which one is best? Whether we are aware of it or not, this question is asked of us many times each day. For example, when we drive to work, we subconsciously think that we are taking the â€Å"best† route. But how did we define best? Was the best route the safest, shortest, fastest, cheapest, most scenic, or what? Obviously, depending upon which criterion is used to identify the best, a dif ferent route might be selected each time! (Many arguments could have been avoided if the decision makers had simply stated the criteria they were using in determining the best). In economic analysis, dollars are generally used as the basis for comparison. Thus, when there are several ways of accomplishing a given objective, the method that has the lowest overall cost is usually selected. However, in most cases the alternatives involve intangible factors, such as the effect of a process change on employee morale, which cannot readily be expressed in terms of dollars. When the alternatives available have approximately the same equivalent cost, the nonquantifiable, or intangible, factors may be used as the basis for selecting the best alternative, For items of an alternative which can be quantified in terms of dollars, it is important to recognize the concept of the time value of money. It is often said that money makes money. The statement is indeed true, for if we elect to invest money today (for example, in a bank or savings and loan association), by tomorrow we will have accumulated more money than we had originally invested. This change in the amount of money over a given time period is called the time value of money; it is the most important concept in engineering economy. You should also realize that if a person or company finds it necessary to borrow money today, by tomorrow more money than the original loan will be owed. This fact is also explained by the time value of money. The manifestation of the time value of money is termed interest, which is a measure of the increase between the original sum borrowed or invested and the final amount owed or accrued. Thus, if you invested money at some time in the past, the interest would be Interest = total amount accumulated – original investment (1. 1) On the other hand, if you borrowed would be Interest money at some time in the past, the interest (1. 2) = present amount owed – original loan In either case, there is an increase in the amount of money that was originally invested or borrowed, and the increase over the original amount is the interest. The original investment or loan is referred to as principal. Probs. 1. 1 to 1. 4 1. 2 Interest Calculations When interest is expressed as a percentage of the original amount per unit time, the result is an interest rate. This rate is calculated as follows: . Percent interest rate = interest accrued per unit time 00% .. I x 1 0 origma amount (1. 3) 6 Level One By far the most common time period used for expressing interest rates is 1 year. However, since interest rates are often expressed over periods of time shorter than 1 year (i. e. 1% per month), the time unit used in expressing an interest rate must also be identified and is termed an interest period. The following two examples illustrate the computation of interest rate. Example 1. 1 The Get-Rich-Quick (GRQ) Company invested $100,000 on May 1 and withdrew a total of $106,000 exactly one year later. Compute (a) the interest gained from the original investment and (b) the interest rate from the investment. Solution (a) Using Eq. ( 1. 1), Interest = 106,000 – 100,000 = $6000 (b) Equation (1. 3) is used to obtain Percent interest rate = 6000 per year 100,000 x 100% = 6% per year Comment For borrowed money, computations are similar to those shown above except that interest is computed by Eq. (1. 2). For example, if GRQ borrowed $100,000 now and repaid $110,000 in 1 year, using Eq. (1. 2) we find that interest is $10,000, and the interest rate from Eq. (1. 3) is 10% per year. Example 1. 2 Joe Bilder plans to borrow $20,000 for 1 year at 15% interest. Compute (a) the interest and (b) the total amount due after 1 year. Solution (a) Equation (1. 3) may be solved for the interest accrued to obtain Interest = 20,000(0. 15) = $3000 (b) Total amount due is the sum of principal and interest or Total due Comment = 0,000 + 3000 = $23,000 Note that in part (b) above, the total amount due may also be computed as Total due = principal(l + interest rate) = 20,000(1. 15) = $23,000 In each example the interest period was 1 year and the interest was calculated at the end of one period. When more than one yearly interest period is involved (for example, if we had wanted to know the amount of interest Joe Bilder would owe on Terminology and Cash-Flow Diagrams 7 the above loan after 3 years), it becomes necessary to determine whether the interest . payable on a simple or compound basis. The concepts of simple and compound interest are discussed in Sec. . 4. Additional Examples 1. 12 and 1. 13 Probs. 1. 5 to 1. 7 1. 3 Equivalence The time value of money and interest rate utilized together generate the concept of equivalence, which means that different sums of money at different times can be equal in economic value. For example, if the interest rate is 12% per year, $100 today (i. e. , at present) would be equivalent to $112 one year from today, since mount accrued = 100 =$112 Thus, if someone offered you a gift of $100 today or $112 one year from today, it would make no difference which offer you accepted, since in either case you would have $112 one year from today. The two sums of money are therefore equivalent to each other when the interest rate is 12% per year. At either a higher or a lower interest rate, however, $100 today is not equivalent to $112 one year from today. In addition to considering future equivalence, one can apply the same concepts for determining equivalence in previous years. Thus, $100 now would be equivalent to 100/1. 12 = $89. 29 one year ago if the interest rate is 12% per year. From these examples, it should be clear that $89. 29 last year, $100 now, and 112 one year from now are equivalent when the interest rate is 12% per year. The fact that these sums are equivalent can be established by computing the interest rate as follows: 112 100 = 1. 12, or 12% per year and 8~~~9 = 1. 12, or 12% per year The concept of equivalence can be further illustrated by considering different loan-repayment schemes. Each scheme represents repayment of a $5000 loan in 5 years at 15%-per-year interest. Table 1. 1 presents the details for the four repayment methods described below. (The methods for determining the amount of the payments are presented in Chaps. 2 and 3. ) †¢ Plan 1 a interest or principal is recovered until the fifth year. Interest accumulates each year on the total of principal and all accumulated interest. †¢ Plan 2 The accrued interest is paid each year and the principal is recovered at the end of 5 years. †¢ Plan 3 The accrued interest and 20% of the principal, that is, $1000, is paid each year. Since the remaining loan balance decreases each year, the accrued interest decreases each year. + 100(0. 12) = 100(1 + 0. 12) = 100(1. 12) 8 Level One Table 1. 1 Different repayment schedules of $5,000 at 15% for 5 years (1) End of year (2) = 0. 15(5) Interest for year (3) = (2) + (5) Total owed at end of year (4) Payment per plan (3) – (4) Balance after payment (5) Plan 1 0 1 2 3 4 5 Plan 2 0 1 2 3 4 5 Plan 3 0 1 2 3 4 5 Plan 4 0 1 2 3 4 5 $ 750. 00 862. 50 991. 88 1,140. 66 1,311. 76 5,750. 00 6,612. 50 7,604. 38 8,745. 04 10,056. 80 0 0 0 0 10,056. 80 $10,056. 80 $ $5,000. 00 5,750. 00 6,612. 50 7,604. 38 8,745. 04 0 $750. 00 750. 00 750. 00 750. 00 750. 00 $5,750. 00 5,750. 00 5,750. 00 5,750. 00 5,750. 00 $ 750. 00 750. 00 750. 00 750. 00 5,750. 00 $8,750. 00 $5,000. 00 5,000. 00 5,000. 00 5,000. 00 5,000. 00 0 $750. 00 600. 00 450. 00 300. 00 150. 00 $5,750. 00 4,600. 00 3,450. 00 2,300. 00 1,150. 00 $1,750. 00 1,600. 00 1,450. 0 1,300. 00 1,150. 00 $7,250. 00 5,000. 00 4,000. 00 3,000. 00 2,000. 00 1,000. 00 0 $750. 00 638. 76 510. 84 363. 73 194. 57 $5,750. 00 4,897. 18 3,916. 44 2,788. 59 1,491. 58 $1,491. 58 1,491. 58 1,491. 58 1,491. 58 1,491. 58 $7,457. 90 $5,000. 00 4,258. 42 3,405. 60 2,424. 86 1,297. 01 0 †¢ Plan 4 Equal payments are made each year with a portion going toward princi- pal recovery and the remainder covering the accrued interest. Since the loan balance decreases at a rate which is slower than in plan 3 because of the equal end-of-year payments, the interest decreases, but at a rate slower than in plan 3. te that the total amount repaid in each case would be different, even though each repayment scheme would require exactly 5 years to repay the loan. The difference in the total amounts repaid can of course be explained by the time value of money, since the amount of the payments is different for each plan. With respect to equivalence, the table shows that when the interest rate is 15% per year, $5000 at time 0 is equivalent to $10,056. 80 at the end of year 5 (plan 1), or $750 per year for 4 years and $5750 at the end of year 5 (plan 2), or the decreasing amounts shown in years 1 through 5 (plan 3), or $1,491. 8 per year for 5 years (plan 4). Using the formulas developed in Chaps. 2 and 3, we could easily show that if the payments in Terminology and Cash-Flow Diagrams 9 each plan (column 4) were reinvested at 15% per year when received, the total amount of money available at the end of year 5 would be $10,056. 80 from each repayment plan. Additional Examples 1. 14 and 1. 15 Probs. 1. 8 and 1. 9 1. 4 Simple and Compound Interest The concepts of interest and interest rate were introduced in Sees. 1. 1 and 1. 2 and ed in Sec. 1. 3 to calculate for one interest period past and future sums of money equivalent to a present sum (principal). When more than one interest period is involved, the terms simple and compound interest must be considered. Simple interest is calculated using the principal only, ignoring any interest that was accrued in preceding interest periods. The total interest can be computed using the relation Interest = (principal)(number of periods)(interest rate) = Pni (1. 4) Example 1. 3 If you borrow $1000 for 3 years at 14%-per-year simple interest, how much money will you owe at the end of 3 years? Solution The interest for each of the 3 years is = Interest per year 1000(0. 14) = $140 Total interest for 3 years from Eq. (1. 4) is Total interest = 1000(3)(0. 4)= $420 Finally, the amount due after 3 years is 1000 + 420 Comment = $1420 The $140 interest accrued in the first year and the $140 accrued in the second year did not earn interest. The interest due was calculated on the principal only. The results of this loan are tabulated in Table 1. 2. The end-of-year figure of zero represents th~ present, th at is, when the money is borrowed. Note that no payment is made by the borrower until the end of year 3. Thus, the amount owed each year increases uniformly by $140, since interest is figured only on the principal of $1000. Table 1. 2 Simple-interest (1) (2) computation (3) (4) (2) + (3) Amount owed (5) End of year 0 1 2 Amount borrowed $1,000 Interest Amount paid 3 $140 140 140 $1,140 1,280 1,420 $ 0 0 1,420 10 Level One In calculations of compound interest, the interest for an interest period is calculated on the principal plus the total amount of interest accumulated in previous periods. Thus, compound interest means â€Å"interest on top of interest† (i. e. , it reflects the effect of the time value of money on the interest too). Example 1. 4 If you borrow $1000 at 14%-per-year compound interest, instead of simple interest as in the preceding example, compute the total amount due after a 3-year period. Solution The interest and total amount due for each year is computed as follows: Interest, year 1 = 1000(0. 14) = $140 Total amount due after year 1 = 1000 + 140 = $1140 Interest, year 2 = 1140(0. 14) = $159. 60 Total amount due after year 2 = 1140 + 159. 60 = $1299. 60 Interest, year 3 = 1299. 60(0. 14)= $181. 94 Total amount due after year 3 = 1299. 60 + 181. 94 = $1481. 54 Comment The details are shown in Table 1. 3. The repayment scheme is the same as that for the simple-interest example; that is, no amount is repaid until the principal plus all interest is due at the end of year 3. The time value of money is especially recognized in compound interest. Thus, with compound interest, the original $1000 would accumulate an extra $1481. 54 – $1420 = $61. 54 compared with simple interest in the 3-year period. If $61. 54 does not seem like a significant difference, remember that the beginning amount here was only $1000. Make these same calculations for an initial amount of $10 million, and then look at the size of the difference! The power of compounding can further be illustrated through another interesting exercise called â€Å"Pay Now, Play Later†. It can be shown (by using the equations that will be developed in Chap. ) that at an interest rate of 12% per year, approximately $1,000,000 will be accumulated at the end of a 40-year time period by either of the Table 1. 3 Compound-interest (1) (2) computation (3) (4) = (2) + (3) (5) End of year 0 1 2 3 Amount borrowed $1,000 Interest Amount owed $1,140. 00 1,299. 60 1,481. 54 Amount paid $140. 00 159. 60 181. 94 $ 0 0 1,481. 54 Terminology and Cash-Flow Diagrams 11 – llowing investment schemes: †¢ Plan 1 Invest $2610 each year for the first 6 years and then nothing for the next 34 years, or †¢ Plan 2 Invest nothing for the first 6 years, and then $2600 each year for the next 34 years!! ‘ote that the total investment in plan 1 is $15,660 while the total required in plan _ to accumulate the same amount of money is nearly six times greater at $88,400. Both the power of compounding and the wisdom of planning for your retirement at he earliest possible time should be quite evident from this example. An interesting observation pertaining to compound-interest calculations in-olves the estimation of the length of time required for a single initial investment to double in value. The so-called rule of 72 can be used to estimate this time. The rule i based on the fact that the time required for an initial lump-sum investment to double in value when interest is compounded is approximately equal to 72 divided by the interest rate that applies. For example, at an interest rate of 5% per year, it would take approximately 14. 4 years (i. e. , 72/5 = 14. 4) for an initial sum of money to double in value. (The actual time required is 14. 3 years, as will be shown in Chap. 2. ) In Table 1. 4, the times estimated from the rule of 72 are compared to the actual times required for doubling at various interest rates and, as you can see, very good estimates are obtained. Conversely, the interest rate that would be required in order for money to double in a specified period of time could be estimated by dividing 72 by the specified time period. Thus, in order for money to double in a time period of 12 years, an interest rate of approximately 6% per year would be required (i. e. , 72/12 = 6). It should be obvious that for simple-interest situations, the â€Å"rule of 100† would apply, except that the answers obtained will always be exact. In Chap. 2, formulas are developed which simplify compound-interest calculations. The same concepts are involved when the interest period is less than a year. A discussion of this case is deferred until Chap. 3, however. Since real-world calculations almost always involve compound interest, the interest rates specified herein refer to compound interest rates unless specified otherwise. Additional Example 1. 16 Probs. 1. 10 to 1. 26 Table 1. 4 Doubling time estimated actual time from rule of 72 versus Doubling lime, no. of periods Interest rate, % per period 1 Estimated from rule 72 Actual 70 35. 3 14. 3 7. 5 2 5 10 20 40 36 14. 4 7. 2 3. 6 1. 8 3. 9 2. 0 12 Level One 1. 5 Symbols and Their Meaning The mathematical symbols: relations sed in engmeenng economy employ the following P = value or sum of money at a time denoted as the present; dollars, pesos, etc. F A n i = value or sum of money at some future time; dollars, pesos, etc. = a series of consecutive, equal, end-of-period month, dollars per year, etc. amounts of money; dollars per = number of interest periods; months, years, etc. = interest rate per interest period; percent per month, percent per year, etc. The symbols P and F represent single-time occurrence values: A occurs at each interest period for a specified number of periods with the same value. It should be understood that a present sum P represents a single sum of money at some time prior to a future sum or uniform series amount and therefore does not necessarily have to be located at time t = O. Example 1. 11 shows a P value at a time other than t = O. The units of the symbols aid in clarifying their meaning. The present sum P and future sum F are expressed in dollars; A is referred to in dollars per interest period. It is important to note here that in order for a series to be represented by the symbol A, it must be uniform (i. e. the dollar value must be the same for each period) and the uniform dollar amounts must extend through consecutive interest periods. Both conditions must exist before the dollar value can be represented by A. Since n is commonly expressed in years or months, A is usually expressed in units of dollars per year or dollars per month, respectively. The compound-interest rate i is expressed in percent per interest period, for example, 5% per year. Ex cept where noted otherwise, this rate applies throughout the entire n years or n interest periods. The i value is often the minimum attractive rate of return (MARR). All engineering-economy problems must involve at least four of the symbols listed above, with at least three of the values known. The following four examples illustrate the use of the symbols. Example 1. 5. If you borrow $2000 now and must repay the loan plus interest at a rate of 12% per year in 5 years, what is the total amount you must pay? List the values of P, F, n, and i. Solution In this situation P and F, but not A, are involved, since all transactions are single payments. The values are as follows: P = $2000 Example 1. 6 i = 12% per year n = 5 years If you borrow $2000 now at 17% per year for 5 years and must repay the loan in equal yearly payments, what will you be required to pay? Determine the value of the symbols involved. Terminology and Cash-Flow Diagrams 13 ~- ution = S2000 = ? per year for 5 years = 17% per year = 5 years – ere is no F value involved. – 1 In both examples, the P value of $2000 is a receipt and F or A is a disbursement. equally correct to use these symbols in reverse roles, as in the examples below. Example 1. 7 T you deposit $500 into an account on May 1, 1988, which pays interest at 17% per year, hat annual amount can you withdraw for the following 10 years? List the symbol values. Solution p = $500 A =? per year i = 17% per year n= 10 years Comment The value for the $500 disbursement P and receipt A are given the same symbol names as before, but they are considered in a different context. Thus, a P value may be a receipt (Examples 1. 5 and 1. 6) or a disbursement (this example). Example 1. 8 If you deposit $100 into an account each year for 7 years at an interest rate of 16% per year, what single amount will you be able to withdraw after 7 years? Define the symbols and their roles. Solution In this example, the equal annual deposits are in a series A and the withdrawal is a future sum, or F value. There is no P value here. A = $100 per year for 7 years F =? i = 16% per year n = 7 years Additional Example 1. 17 Probs. 1. 27 to 1. 29 14 Level One 1. 6 Cash-Flow Diagrams Every person or company has cash receipts (income) and cash disbursements (costs) which occur over a particular time span. These receipts and disbursements in a given time interval are referred to as cash flow, with positive cash flows usually representing receipts and negative cash flows representing disbursements. At any point in time, the net cash flow would be represented as Net cash flow = receipts – disbursements (1. 5) Since cash flow normally takes place at frequent and varying time intervals within an interest period, a simplifying assumption is made that all cash flow occurs at the end of the interest period. This is known as the end-of-period convention. Thus, when several receipts and disbursements occur within a given interest period, the net cash flow is assumed to occur at the end of the interest period. However, it should be understood that although the dollar amounts of F or A are always considered to occur at the end of the interest period, this does not mean that the end of the period is December 31. In the situation of Example 1. 7, since investment took place on May 1, 1988, the withdrawals will take place on May 1, 1989 and each succeeding May 1 for 10 years (the last withdrawal will be on May 1, 1998, not 1999). Thus, end of the period means one time period from the date of the transaction (whether it be receipt or disbursement). In the next chapter you will learn how to determine the equivalent relations between P, F, and A values at different times. A cash-flow diagram is simply a graphical representation of cash flows drawn on a time scale. The diagram should represent the statement of the problem and should include what is given and what is to be found. That is, after the cash-flow diagram has been drawn, an outside observer should be able to work the problem by looking at only the diagram. Time is considered to be the present and time 1 is the end of time period 1. (We will assume that the periods are in years until Chap. . ) The time scale of Fig. 1. 1 is set up for 5 years. Since it is assumed that cash flows occur only at the end of the year, we will be concerned only with the times marked 0, 1, 2, †¦ , 5. The direction of the arrows on the cash-flow diagram is important to problem solution. Therefore, in this text, a vertical arrow pointing up will indicate a positive cash flow. Conversely, an a rrow pointing down will indicate a negative cash flow. The cash-flow diagram in Fig. 1. 2 illustrates a receipt (income) at the end of year 1 and a disbursement at the end of year 2. It is important that you thoroughly understand the meaning and construction of the cash-flow diagram, since it is a valuable tool in problem solution. The three examples below illustrate the construction of cash-flow diagrams.  ° Figure 1. 1 A typical cash-flow time scale. Year 1 Year 5 r=;:;; r+;:;. I 1 2 Time o I I 3 4 I 5 Terminology and Cash-Flow Diagrams 15 + Figure 1. 2 Example of positive and negative cash flows. 2 3 Time Example 1. 9 Consider the situation presented in Example 1. 5, where P = $2000 is borrowed and F is to be found after 5 years. Construct the cash-flow diagram for this case, assuming an interest rate of 12% per year. Solution Figure 1. 3 presents the cash-flow diagram. Comment While it is not necessary to use an exact scale on the cash-flow axes, you will probably avoid errors later on if you make a neat diagram. Note also that the present sum P is a receipt at year 0 and the future sum F is a disbursement at the end of year 5. Example 1. 10 If you start now and make five deposits of $1000 per year (A) in a 17%-per-year account, how much money will be accumulated (and can be withdrawn) immediately after you have made the last deposit? Construct the cash-flow diagram. Solution The cash flows are shown in Fig. 1. 4. Since you have decided to start now, the first deposit is at year 0 and the [lith Comment deposit and withdrawal occur at the end of year 4. Note that in this example, the amount accumulated after the fifth deposit is to be computed; thus, the future amount is represented by a question mark (i. e. , F = ? ) Figure 1. 3. Cash-flow diagram for Example 1. 9. + P = $2. 000 i = 12% o 2 3 4 5 Year F= ? 16 Figure 1. 4 Cashflow diagram for Example 1. 10. Level One F= ? i = 17†³10 2 0 3 4 Year A=$1. 000 Example 1. 11 Assume that you want to deposit an amount P into an account 2 years from now in order to be able to withdraw $400 per year for 5 years starting 3 years from now. Assume that the interest rate is 151% per year. Construct the cash-flow diagram. Figure 1. 5 presents the cash flows, where P is to be found. Note that the diagram shows what was given and what is to be found and that a P value is not necessarily located at time t = O. Solution Additional Examples 1. 18 to 1. 20 Probs. 1. 30 to 1. 46 Additional Examples Example 1. 12 Calculate the interest and total amount accrued after 1 year if $2000 is invested at an interest rate of 15% per year. Solution Interest earned = 2000(0. 15) = $300 Total amount accrued = 2000 + 2000(0. 15) = 2000(1 + 0. 15) = $2300 Figure 1. 5 Cashflow diagram for Example 1. 11. A = $400 o 2 3 4 5 6 7 Year p=? Terminology and Cash-Flow Diagrams 17 Example 1. 13 a) Calculate the amount of money that must have been deposited 1 year ago for you to have $lOQO now at an interest rate of 5% per year. b) Calculate the interest that was earned in the same time period. Solution a) Total amount accrued = original deposit + (original deposit)(interest rate). If X = original deposit, then 1000 = X + X(0. 5) = X(l + 0. 05) 1000 = 1. 05X 1000 X=-=952. 38 1. 05 Original deposit = $952. 38 (b) By using Eq. (1. 1), we have Interest = 1000 – 952. 38 = $47. 62 Example 1. 14 Calculate the amount of money that must have been deposited 1 year ago for the investment to earn $100 in interest in 1 year, if the interest rate is 6% Per year. Solution Let a = a = = total amount accrued and b = original deposit. Interest Since a Interest Interest b b + b (interest rate), interest can be expressed as + b (interest rate) b =b = b (interest rate) $100 = b(0. 06) b = 100 = $1666. 67 0. 06 Example 1. 5 Make the calculations necessary to show which of the statements below are true and which are false, if the interest rate is 5% per year: (a) $98 now is equivalent to $105. 60 one year from now. (b) $200 one year past is equivalent to $205 now. (c) $3000 now is equivalent to $3150 one year from now. (d) $3000 now is equivalent to $2887. 14 one year ago. (e) Interest accumulated in 1 year on an investment of $2000 is $100. Solution (a) Total amount accrued = 98(1. 05) = $102. 90 =P $105. 60; therefore false. Another way to solve this is as follows: Required investment = 105. 60/1. 05 = $100. 57 =P $9? Therefore false. b) Required investment = 205. 00/1. 05 = $195. 24 =p $200; therefore false. 18 Level One (e) Total amount accrued = 3000(1. 05) = $3150; therefore true. (d) Total amount accrued = 2887. 14(1. 05) = $3031. 50 â€Å"# $3000; therefore false. (e) Interest = 2000(0. 05) = $100; therefore true. Example 1. 16 Calculate the total amount due after 2 years if $2500 is borrowed now and the compoundinterest rate is 8% per year. Solution The results are presented in the table to obtain a total amount due of $2916. (1) (2) (3) (4) = (2) + (3) (5) End of year Amount borrowed $2,500 Interest Amount owed Amount paid o 1 2 Example 1. 17 $200 216 2,700 2,916 $0 2,916 Assume that 6% per year, starting next withdrawing Solution P = you plan to make a lump-sum deposit of $5000 now into an account that pays and you plan to withdraw an equal end-of-year amount of $1000 for 5 years year. At the end of the sixth year, you plan to close your account by the remaining money. Define the engineering-economy symbols involved. $5000 A = $1000 per year for 5 years F = ? at end of year 6 i = 6% per year n = 5 years for A Figure 1. 6 Cashflow diagram for Example 1. 18. $650 $625 $600 $575 $ 550 $525 $500 $625 t -7 -6 -5 -4 -3 -2 -1 t o Year P = $2,500 Terminology and Cash-Flow Diagrams 19 Example 1. 1B The Hot-Air Company invested $2500 in a new air compressor 7 years ago. Annual income â€Å"-om the compressor was $750. During the first year, $100 was spent on maintenance, _ cost that increased each year by $25. The company plans to sell the compressor for salvage at the end of next year for $150. Construct the cash-flow diagram for the piece f equipment. The income and cost for years – 7 through 1 (next year) are tabulated low with net cash flow computed using Eq. (1. 5). The cash flows are diagrammed . Fig. 1. 6. Solution End of year Net cash flow Income Cost -7 -6 -5 -4 -3 -2 -1 0 1 Example 0 750 750 750 750 750 750 750 750 + 150 $2,500 100 125 150 175 200 225 250 275 $-2,500 650 625 600 575 550 525 500 625 1. 19 Suppose that you want to make a deposit into your account now such that you can withdraw an equal annual amount of Ai = $200 per year for the first 5 years starting 1 year after your deposit and a different annual amount of A2 = $300 p er year for the following 3 years. How would the cash-flow diagram appear if i is 14! % per year? Solution The cash flows would appear as shown in Fig. 1. 7. Comment The first withdrawal (positive cash flow) occurs at the end of year 1, exactly one year after P is deposited. Figure 1. 7 Cash-flow diagram for two different A values, Example 1. 19. A2 = $300 A, = $200 0 1 2 3 4 i = 14+% 5 6 7 8 Year p=? 20 Level One p=? j = 12% per year Figure 1. 8 Cash-flow diagram for Example 1. 20. F2 1996 1995 A = $50 A = $150 = $50 F, = $900 Example 1. 20 If you buy a new television set in 1996 for $900,. maintain it for 3 years at a cost of $50 per year, and then sell it for $200, diagram your cash flows and label each arrow as P, F, or A with its respective dollar value so that you can find the single amount in 1995 that would be equivalent to all of the cash flows shown. Assume an interest rate of 12% per year. Solution Comment Figure 1. 8 presents the cash-flow diagram. The two $50 negative cash flows form a series of two equal end-of-year values. As long as the dollar values are equal and in two or more consecutive periods, they can be represented by A, regardless of where they begin or end. However, the $150 positive cash flow in 1999 is a single-occurrence value in the future and is therefore labeled an F value. It is possible, however, to view all of the individual cash flows as F values. The diagram could be drawn as shown in Fig. . 9. In general, however, if two or more equal end-of-period amounts occur consecutively, by the definition in Sec. 105 they should be labeled A values because, as is described in Chap. 2, the use of A values when possible simplifies calculations considerably. Thus, the interpretation pictured by the diagram of Fig. 1. 9 is discouraged and will not generally be used further in this text. p=? j = 12% per year F. = $150 1. 9 A cash flow for Example 1. 20 considering all values as future sums. Figure 1996 1995 1997 1998 1999 F2 = $50 F3 = $50 F, = $900

Benefits of Animal Experimentation - 1123 Words

Benefits of Animal Experimentation Animal Experimentation has been used for thousands of years from early Greeks to modern day physicians. Animal Experimentation is not only beneficial in gaining knowledge on diseases, but can also help to discover cures. Animal testing is not a very new idea, and has been performed for a large portion of history. Some of the earliest experiments can be traced back to early Greek physicians and scientist such as Aristotle and Erasistratus who did tests on living animal subjects to find the differences between sensory nerves, tendons, and motor nerves. All of these early procedures were performed without any type of pain reliever or sedative used. In today’s times, there are plenty of different anesthetics to be used to help make these procedures easier for both an animal and the scientist. Later on, another Greek physician named Galen used animal testing to advance multiple fields in medicine such as pathology, anatomy, physiology, and pharmac ology. In twelfth century Spain, Arab physician Ibn Zuhr used animal testing as a new way for testing surgical procedures on animals before they were used on humans. These tests and experiments went without question for many centuries, until recently when these practices came under question by many animals rights groups. Animal testing is also used to test new pharmaceutical drugs before they are released to the public. If these tests aren’t done catastrophe may ensue. In 1937 a new drug was createdShow MoreRelatedAnimal Experimentation Is Fundamental For Medical Advancement And Cancer Research909 Words   |  4 PagesAnimal experimentation has been a controversial issue amongst scientists and animal activists since the early 1600s (Animal Testing - ProCon.org). When it comes to the topic of animal experimentation, most of us will readily agree that it’s necessary for medical research. Where this agreement usually ends, however, is on the question of morality. Whereas some are convinced that it’s unethical and scientifically unnecessary, others maintain that it’s needed for medical progress. My stance on the subjectRead MoreAnimal Experimentation And Its Effects On Human Life And Survival965 Words   |  4 PagesInstructor Miguel Marrero English 1302 September 18, 2014 Animal Experimentation The various experiments are performed on living animals especially to test the effects of chemical compounds such as new drugs, cosmetics, food additives and pesticides. The application of animals to test a large number of products from household compounds and cosmetics to pharmaceutical has been considered to be a normal strategy for many years. Animal experimentation has existed since ancient times and contributed to humanRead MoreAnimal Experimentation Is Wrong?1687 Words   |  7 Pagestypes of animals and respect them as equals on their shared territory. Animals are not treated as equals and therefore the animals are suffering from the harm that humans are inflicting on them through animal testing experimentation. These acts of animal experimentation have caused a decrease in the number of some species of animals, while others have broken several rights that animals have and are protected under The Animal Welfare Act. Animal experimentation is wrong because people use animals for beautyRead MoreAnimal Experimentation And The Early Greek Era1716 Words   |  7 PagesYuritza Vargas-Gomez Ms. Thomas ENC 1101 9 November 2015 Animal Experimentation: We Owe It to Them Animal Experimentation has been dated as far back as to the Early Greek Era. This practice has been viewed as ethical by research scientists trying to find new medical breakthroughs. Yet, in recent years, the use of animals in research and experimentation has been frowned upon by animal protection groups and animal rights activists. Animals are protected by certain guidelines and ethics prior to theirRead MoreThe Use Of Scientific Testing On Animals1503 Words   |  7 Pageshumans have used animals as means of learning more about the world. The first known vivisection was done by a Greek philosopher, Alcmaeon, in 450 B. C. E (â€Å"Animal Testing† NP). Since then, animals have had invasives tests performed on them, been killed, and been experimented on in the name of science or for profit. Some experiments are in order to demonstrate already known facts to students, others are to further medical knowledge, and some are to test drugs and cosmetics (â€Å"Animal Testing† NP). ScientificRead MoreThe Facts About Animal Experimentation1138 Words   |  5 PagesThe Facts About Animal Experimentation Animal experimentation is the use of animals in research or projects involving the safety of foods, drugs, or other substances. It is a part of almost everything we use in our everyday lives. These tests can be performed on a variety of animals. There are also many different ways to perform these tests. Animal testing affects all of the lives around us. Both animals and humans are affected by this in a range of different ways. Animal testing can be shown throughRead MoreAnimal Testing For The Sole Benefit Of Humans979 Words   |  4 PagesFor years, there has been a debate regarding the use of animals in medical testing for the sole benefit of humans. Many people believe that testing on nonhuman animals solve the many issues that humans face, but most of the time animals are exploited and put through painful experimental processes. The purpose of this paper is to examine the possible alternatives to animal testing and the evaluate whether there is a reduction in animals being used f or experiments. The author of this paper will examineRead MoreEssay about The Ethics and Limitations of Animal Research 1550 Words   |  7 Pages The moral status of animals is an issue of much debate in Science. According to The Royal Society, the oldest scientific academy nowadays, it would have been impossible for science and medicine to develop so without animal research (â€Å"The Use of Non-Human Animals in Research†, 2004). Nevertheless, do the human medical benefits really justify the animal suffering in animal research? If so, what should are the possible considerations and limitations related to the matter? It appears to be a challengeRead MoreHow Do The Contributions Of Animal Testing To Global Medical1309 Words   |  6 Pagescontributions of animal testing to global medical science justify whether or not it should be banned? According to the Humane Society International (HSI), animal testing or animal experimentation for medical research refers to the experimentation on live animals for the purposes of investigation on diseases, medical treatments, or fundamental biology. Charles Gross, a former member of the History of Neuroscience committee of the global Society for Neuroscience, states that animals were used for improvingRead MoreAnimals for Research and Experimentation678 Words   |  3 Pages100 million animals are used for research and experimentation on around the world every year. Apart from all the benefits of animal testing there are many good reasons which support banning the experimentations on animals such as: animal cruelty, selfishness, and danger of using the experiments result. Therefore animal experimentation should be banned. These days, animal testing has brought a lot of issues in the society. The first and foremost argument that is presented against animal testing deals