Engineering Economy
Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
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Chapter 1, Problem 58APQ
To determine

Calculate the interest rate.

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An interest rate of 18% per year, compounded continuously, is closest to an effective: (a) 1.51% per quarter (b) 4.5% per quarter (c) 4.6% per quarter (d) 9% per 6 months
The present worth of a deposit of $1000 now and $1000 every 6 months for 10 years at an interest rate of 10% per year, compounded semiannually is represented by which of the following equations: (a) P = 1000(P∕A,5%,21)(F∕P,5%,1) (b) P = 1000 (P∕A,5%,20) (c) P = 1000 (P∕A,5%,21) (d) P = 1000 + 1000(P∕A,10.25%,10)
An interest rate of 2% per month is the same as: (a) 24% per year, compounded monthly (b) a nominal 24% per year, compounded monthly (c) an effective 24% per year, compounded monthly (d) Both (a) and (b)
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