Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 24P
To determine
The interest rate on the loan.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A local financing bank granted a car loan to a man who agreed to pay a rate of interest of 20%. Interest in this type of transaction is to be deducted from the loan at the time the money is released. At the end of one year, the borrower will have to pay the same amount that is stated in his loan application. What actual interest did the financing bank charge him? Do a manual solution.
A local financing bank granted a car loan to a man who agreed to pay a rate of interest of 20%. Interest in this type of transaction is to be deducted from the loan at the time the money is released. At the end of one year, the borrower will have to pay the same amount that is stated in his loan application. What actual interest did the financing bank charge him?
How did you get the values 93 million and 51 million?
Chapter 1 Solutions
Basics Of Engineering Economy
Ch. 1 - Prob. 1PCh. 1 - Which of the following would be considered...Ch. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - What is meant by the term time value of money?
Ch. 1 - Prob. 11PCh. 1 - Of the fundamental dimensions length, mass, time,...Ch. 1 - Prob. 13PCh. 1 - When an interest rate statement does not include a...Ch. 1 - Prob. 15PCh. 1 - Prob. 16PCh. 1 - Prob. 17PCh. 1 - Prob. 18PCh. 1 - Prob. 19PCh. 1 - Prob. 20PCh. 1 - Prob. 21PCh. 1 - Prob. 22PCh. 1 - Prob. 23PCh. 1 - Prob. 24PCh. 1 - Prob. 25PCh. 1 - Prob. 26PCh. 1 - Prob. 27PCh. 1 - Prob. 28PCh. 1 - How many years does it take for an investment of...Ch. 1 - Prob. 30PCh. 1 - Prob. 31PCh. 1 - Prob. 32PCh. 1 - Prob. 33PCh. 1 - Prob. 34PCh. 1 - Prob. 35PCh. 1 - Prob. 36PCh. 1 - Prob. 37PCh. 1 - Prob. 38PCh. 1 - Prob. 39PCh. 1 - Prob. 40PCh. 1 - Prob. 41PCh. 1 - Prob. 42PCh. 1 - Prob. 43PCh. 1 - Prob. 44PCh. 1 - At 9% per year simple interest, 1000 is equivalent...Ch. 1 - Prob. 46PCh. 1 - Prob. 47PCh. 1 - Prob. 48PCh. 1 - Prob. 49PCh. 1 - Prob. 50PCh. 1 - Prob. 51PCh. 1 - Prob. 52PCh. 1 - Prob. 53PCh. 1 - Prob. 54PCh. 1 - Prob. 55PCh. 1 - Prob. 56PCh. 1 - Prob. 57PCh. 1 - Prob. 58PCh. 1 - Prob. 59PCh. 1 - Prob. 60PCh. 1 - Prob. 61PCh. 1 - Prob. 62PCh. 1 - Prob. 63PCh. 1 - Prob. 64PCh. 1 - Prob. 65PCh. 1 - Prob. 66PCh. 1 - Prob. 67PCh. 1 - Prob. 69APQCh. 1 - Prob. 70APQCh. 1 - Prob. 71APQCh. 1 - Prob. 72APQCh. 1 - An investment of 8,000 nine years ago has...Ch. 1 - Prob. 74APQCh. 1 - Prob. 75APQCh. 1 - Prob. 76APQCh. 1 - Prob. 77APQ
Knowledge Booster
Similar questions
- A financial institution is willing to lend you $600.However, $645 is repaid at the end of one week.(a) What is the nominal interest rate?(b) What is the effective annual interest rate?arrow_forwardMr. Haitham takes a loan from Bank Muscat for which the repayment period is 10 months. This is an example of: A)Investment B)Medium-term loan C)Long term loan D)Short term loanarrow_forwardI need assisstance with D,E, and F pleasearrow_forward
- An engineer applied for a car loan at a financing institution which charges a rate of 22%. Interest is to be deducted from the loan at the time the money is released. At the end of 1 year the engineer will have to pay the same amount as stated in his application for loan. What is the actual interest did the financing firm charge him?arrow_forward\table [[\table[[Toul], [predued]], \table[[Averase], [fixed], [cest]], \table[[Averago], [variah b], [cont]], \table[[Awerage], [ totel], [eand]], \table [[Marginal], [cast]]], [1, 810000, $17.00, $11700, 117], [2, 50.00, 1600, 6600, is], [3, 3333, is 00, 4833, is ].[4.2500, 1425, 3925, 12], [3, 20.00, 1400, 34.00, 13], [6, 16.67, 1400, 30.67, 14], [7, 1420, 1571, 5. 0.00, 26], [s, 1250, 1750, $0.00, 30], [9.11.11, 19.44, 30.55, 35], [10, 10.00, 21.60, . 60, 41], [11, 900, 2400, 209, 48], [12, 833, 26.67, 3500, 56]] [To recelve eredie, you must ahow all calculaches asd Meps taken accordiag wo the preth - max probedure we dhcussed in clasis. a. If the market price bor the firm's output is $12 per unit, will this firm produse in the short rust if it boes prodoos, what b. Answer querions is part (a) asoming thet the prodact peice is $28 per unit. c. Answer the questions in part (a) asaming that the produet price is $32 per unit. Toni Jwerage fixed werage variable Average Marginal product…arrow_forwardSubpoints D and C onlyarrow_forward
- Please explain how to know what formula to use for factor notation in engineering economic. Ex. (F/A,I,n) or (F/P,i,n)arrow_forwardjust subparts d, e and f pleasearrow_forwardA broadband service company borrowed $2 million for new equipment and repaid the principal of the loan plus $275,000 interest after 1 year. What was the interest rate on the loan?arrow_forward
- A man applied for a car loan in a local financing bank which charges a rate of interest of 18%. Interest in this type of transaction is to be deducted from the loan at the time the money is released. At the end of one year the borrower will have to pay the same amount what is stated in his application for the loan. What is the actual interest did the financing bank charge him?arrow_forward1.13 RKI Instruments borrowed $4,800,000 from a private equity firm for expansion of its facility for manufacturing carbon monoxide monitors. The company repaid the loan after 1 year with a single payment of $5,184,000. What was the interest rate on the loan?arrow_forwardFind the correct numerical value for the following factors from the interest tables:a. (F/P,10%,20)b. (A/F,4%,8)c. (P/A,8%,20)d. (A/P,20%,28)e. (F/A,30%,15)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education