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 75APQ
To determine
Calculate the interest rate.
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Engr. De los Santos loans from a lending company an amount of P100,000 with a simple insterst of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, he has to pay full amount of P100,000. What is the actual rate of interest
It is a common practice in lending companies that the interest is deducted at the time money is borrowed. Mr. Anito applied a loan amount of P 50,000 with an interest rate of 16% per year. During the time he received the money, the 16% interest is being deducted and he received only P 42,000. At the end of one year, Mr. Anito has to pay P 50,000. What is the actual rate of interest?
5) The cost of tuition at public universities has been steadily increasing for many years. One Midwestern University pledged to keep the tuition constant for 4 years for all students who finished in the top 3% of their class. One such student who liked researchplanned to enroll at the university and continue there until earning a PhD degree (a total time of 9 years). If the tuition for the first 4 years will be $7200 per year and it increases by 5% per year for the next 5 years, what is the present worth of the tuition cost at aninterest rate of 8% per year?
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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- 1.28 Use economic equivalence to determine the amount of money or value of i that makes the following statements correct. (a) $5000 today is equivalent to $4275 exactly 1 year ago at i =% per year. (b) A car that costs $28,000 today will a year from now at i = cost $ 4% per year. (c) At i = 4% per year, a car that costs $28,000 now, would have cost $ one year ago.arrow_forwardA business generates $10,000 per year for 10 years starting year 2. At i = 10% per year, how much should you pay for it today? 1.arrow_forwardMrs. Gardner borrowed from a bank an amount of P 43,200 and promised to pay it at the end of 142 days. But if paid within 40 days, the bank offers a 13.5 % discount. Find the rate of interest. eng econarrow_forward
- Jamal, who is adventurous, decides to take a year-long road trip from Bangladesh to South Africa via Egypt. He buys a used car for Tk.500,000. At the end of the trip he sells the car for (the equivalent of) Tk.250,000. Furthermore, the benefit he derived from the car could be measured as Tk.300,000. (a) Calculate the internal rate of return. (b) Instead of going on the road trip, Jamal could have put his money in a bank account paying 12% per annum. In this case, was going on the road trip a wise monetary decision?arrow_forwardSuppose you start saving for retirement when you are 45 years old. You invest $6,000 the first year and increase this amount by 3% each year to match inflation. How much money will you have saved after 25 years if the interest rate earned on the retirement account is 8% per year? (a) You will have saved $. (Round to the nearest dollar.) (b) On the other hand, you will have saved $ if the interest rate was 3% instead of the original 8%.arrow_forwardA company will deposit R$800 at the end of each semester, for 2 years, in a financial institution that pays interest of 24% p.a. capitalized semiannually. What will be the accumulated amount? The amount will be R$? R$ is BRL (monetary unit of Brazil)arrow_forward
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