ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Chapter 3, Problem 50P
To determine
To compute the effective annual interest rate charged by the credit company in both scenarios.
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If 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 Annually
Jana invested a hundred thousand pesos in an account now. After eight years, she withdraws the principal. The remaining amount is then left for another eight years. If the interest is 5% semi-annually, what will be the withdrawable amount at the end of the sixteenth year?
You want to borrow $1500 at 8% and you are willing to pay $210 in simple interest.How long can you keep the money
Chapter 3 Solutions
ENGR.ECONOMIC ANALYSIS
Ch. 3 - Prob. 1QTCCh. 3 - Prob. 2QTCCh. 3 - Prob. 3QTCCh. 3 - Prob. 4QTCCh. 3 - Prob. 5QTCCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5P
Ch. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - Prob. 31PCh. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39PCh. 3 - Prob. 40PCh. 3 - Prob. 41PCh. 3 - Prob. 42PCh. 3 - Prob. 43PCh. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49PCh. 3 - Prob. 50PCh. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - Prob. 53PCh. 3 - Prob. 54PCh. 3 - Prob. 55PCh. 3 - Prob. 56PCh. 3 - Prob. 57PCh. 3 - Prob. 58P
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Similar questions
- You are taking a $5000 loan. You will pay it back in four equal amounts, paid every 6 months starting 5 years from now. The interest rate is 12% compounded semiannually. Calculate: (a) The effective interest rate (b) The amount of each semiannual payment (c) The total interest paidarrow_forwardIf $700 is invested at 11% simple interest, calculate its value after 8 years.arrow_forwardA credit card has interest rate of 12% per year ( Annual Percentage Rate). It is charging the interest rate that is daily compounding. What is the effective interest rate?arrow_forward
- YVETTE AND AARON DEPOSITED A JOINT ACCOUNT AN AMOUNT OF P1000 AT BPI AT 5% INTEREST COMPOUNDED YEARLY. AFTER 8 YEARS, THE PRINCIPAL WAS WITHDRAWN, LEAVING THE INTEREST EARNED WHICH ACCRUED ANOTHER 8 YEARS AT THE BANKS. WHAT WILL BE THE AMOUNT THAT WILL BE WITHDRAWN ON THE 16TH YEAR?arrow_forwardAt what rate of interest, compounded annually will an investment triple itself in 8 years?arrow_forward$9000 is deposited into a savings account at the end of each year for 20 years. If the account pays 10% interest per year, how much value will the account have at the end of the 20 year period?arrow_forward
- Your visa card charges 1 % interest every month, what are the nominal and effective interest rates per year?arrow_forwardSuppose you invested a hundred thousand pesos in an account now. After eight years, you withdrew the principal. The remaining amount is then left for another eight years. If the interest is 5% semi-annually, what will be the withdrawable amount at the end of thesixteenth year?arrow_forwardAt a certain interest rate compounded quarterly, 2500 will amount to 10500 in 7 years. What is the amount at the end of 12 yearsarrow_forward
- 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?arrow_forwardA man secured a 8,057 loan at 2% interest rate, Find the annual amortization to extinguish it in 1 years if payments are done every beginning of the month.arrow_forwardWhat 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. continuouslyarrow_forward
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