Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 1, Problem 72APQ
To determine
Calculate the interest rate.
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1. Many small companies use accounts receivable as collateral to borrow money for continuing
operations and meeting payrolls. If a company borrows $300,000 now at an interest rate of
1% per month, but the rate changes to 1.25% per month after 4 months, how much will the
company owe at the end of 1 year?
Suppose that $30,000 is borrowed today at 12% interest. The loan is to be repaid by uniform annual payments for 5 years,
beginning 1 year from now. Calculate the annual payment.
A) $500 per year
$8,322 per year
C
$108,140 per year
D) $3603.00 per year
What will be the balance at the end of 5 years for $30,500 now at 10% annual interest, if compound interest is :a. weekly b. continuously
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
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Similar questions
- 3. An individual wishes to deposit an amount of money now to have an accumulation of $500 at the end of five years. If the interest rate is at 4% per year, compounded semiannually, determine how much should be deposited ?arrow_forwardHow much money would you need to deposit today at 9% annual interest compounded monthly to have $12000 in the account after 6 years? A) $7,007 B) $20,550 $20,125 D) $7,155arrow_forwardIf the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be: A. 10% per annum B. 10.10 per annum C. 10.25% per annum D. 10.38% per annumarrow_forward
- (6) A loan of $20,000 is to be repaid in uniform monthly payments over 3 years. If the interest in 9% per year compounded monthly, what is the amount of unpaid las principal after 24 monthly payments?arrow_forwardFirst Bank is sending university alumni an invitation to obtain a credit card, with the name oftheir university written on it, for a nominal 11.9% interest per year after 6 months of 0%interest. Interest is compounded monthly. Starting in the second year, the APR increases to anominal rate of 23.9%.a. What is the effective annual interest rate for the first year?b. What is the effective annual interest rate for the second yeararrow_forward2. How much money can be withdrawn every 3 months for 12 years from a retirement fund which earns 18% per year interest compounded monthly and has a present amount of $150000 in it?arrow_forward
- How much interest would Princess Ybañez will be paid each year on a loan of $2000 at an annual interest of 8%? How much interest would she have beenpaidover an 8-year period?arrow_forward1.ompute for the effective interest rate per semi-annual Nominal rate = 28.9% compounded semi-annual 2.arrow_forwardIf the effective interest rate is 20% per annum, what is the Nominal Rate if it is? A.Compounded Monthly B.Compounded Quarterly C. Compounded Semi-Annually D.Compounded Annuallyarrow_forward
- Calculate the amount of money an engineer pays on a loan if she borrows $50,000 for 7 years at 11.5% per annum compound interest.arrow_forwardIf you borrow $4000 and you have to return it after 3 years , in case of compound interest rate of 2% ,the loan will be at the end of second year is: Select one: a. $4244 b. $4080 c. $4161 d. $4240arrow_forwardEngr. Simon borrows P100,000 at 10% effective annual interest. He must pay back the loan over 30 years with uniform monthly payment due on the first day of each month. What does Engr. Simon pay each month?arrow_forward
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