Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 147FE
To determine
Calculate the Effective interest rate.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
7. Sarah borrows some money to buy a new car. The car dealership allows her to defer
payments for 12 months, and Sarah makes 60 end of month payments thereafter. If the
original loan is $15321 and interest is 0.75% per month, how much will Sarah's monthly
payment be?
• $697
$627
$349
$279
$418
N
1. You need $3,000 to buy a new stereo for your car in 3 years. What value you must have
now if the compounded annually return is 10%.
2. Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth
of the savings. If the estimated rate of return on the trust fund is 8%?+
14 - Find the amount to be repaid at the end of 10 years for the loan of 150 000 lira withdrawn from the bank for housing need with an annual compound interest of 15%.
How much less would be paid if this payment had been made on a simple interest calculation?A) 232 105B) 231 834C) 235 000D) 233 575E) 234 271
Chapter 4 Solutions
Engineering Economy (17th Edition)
Ch. 4 - Compare the interest earned by 9,000 for five...Ch. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10P
Ch. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Automobiles of the future will most likely be...Ch. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - A geothermal heat pump can save up to 80% of the...Ch. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - DuPont claims that its synthetic composites will...Ch. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65PCh. 4 - Prob. 66PCh. 4 - Prob. 67PCh. 4 - Prob. 68PCh. 4 - Prob. 69PCh. 4 - Prob. 70PCh. 4 - Prob. 71PCh. 4 - Prob. 72PCh. 4 - Prob. 73PCh. 4 - Prob. 74PCh. 4 - Prob. 75PCh. 4 - Prob. 76PCh. 4 - Prob. 77PCh. 4 - Prob. 78PCh. 4 - Prob. 79PCh. 4 - Prob. 80PCh. 4 - Prob. 81PCh. 4 - Prob. 82PCh. 4 - Prob. 83PCh. 4 - Prob. 84PCh. 4 - Prob. 85PCh. 4 - Prob. 86PCh. 4 - Prob. 87PCh. 4 - Prob. 88PCh. 4 - Prob. 89PCh. 4 - Prob. 90PCh. 4 - Prob. 91PCh. 4 - Prob. 92PCh. 4 - Prob. 93PCh. 4 - Prob. 94PCh. 4 - Prob. 95PCh. 4 - Prob. 96PCh. 4 - Prob. 97PCh. 4 - Prob. 98PCh. 4 - Prob. 99PCh. 4 - Prob. 100PCh. 4 - Prob. 101PCh. 4 - Prob. 102PCh. 4 - Prob. 103PCh. 4 - Prob. 104PCh. 4 - Prob. 105PCh. 4 - Prob. 106PCh. 4 - Prob. 107PCh. 4 - Prob. 108PCh. 4 - Prob. 109PCh. 4 - Prob. 110PCh. 4 - Prob. 111PCh. 4 - Prob. 112PCh. 4 - Prob. 113PCh. 4 - Prob. 114PCh. 4 - Prob. 115PCh. 4 - Prob. 116PCh. 4 - Prob. 117PCh. 4 - Prob. 118PCh. 4 - Prob. 119PCh. 4 - Prob. 120PCh. 4 - Prob. 121PCh. 4 - Prob. 122PCh. 4 - Prob. 123PCh. 4 - Prob. 124PCh. 4 - Prob. 125PCh. 4 - Prob. 126PCh. 4 - Analyze the truth of this statement, assuming you...Ch. 4 - Prob. 128PCh. 4 - Prob. 129SECh. 4 - Prob. 130SECh. 4 - Prob. 131SECh. 4 - Prob. 132SECh. 4 - Prob. 133CSCh. 4 - Prob. 134CSCh. 4 - Prob. 135CSCh. 4 - Prob. 136FECh. 4 - Prob. 137FECh. 4 - Prob. 138FECh. 4 - Prob. 139FECh. 4 - Prob. 140FECh. 4 - Prob. 141FECh. 4 - Prob. 142FECh. 4 - Prob. 143FECh. 4 - Prob. 144FECh. 4 - Prob. 145FECh. 4 - Prob. 146FECh. 4 - Prob. 147FECh. 4 - Prob. 148FECh. 4 - Prob. 149FECh. 4 - Prob. 150FECh. 4 - Prob. 151FECh. 4 - Prob. 152FECh. 4 - Prob. 153FE
Knowledge Booster
Similar questions
- Suppose that $1,000 is invested quarterly at 6% interest, compounded quarterly. How much will be in the account after five years? A $5,637 B) $5,152 $23,124 D $43.20arrow_forward26. On May 1, 1950, M deposited $100 in a savings account which pays 3% compounded semiannually and continued to make similar deposits every six months thereafter. After May 1, 1962, the bank paid 4% compounded semiannually. How much will be to his credit just after the deposit on November 1, 1970? Hint. 100.01s (1.02) + 100 00arrow_forwardSuppose you purchased a corporate bond with a 10-year maturity. a $1,000par value, a 10% coupon rate, and semiannual interest payments. What all this means that you receive $50 interest payment at the end of each six-month period for 10 years (20 times). Then, when the bond matures, you will receive the principal amount (the face value) in a lump sum. Three years after the bonds were purchased, the going rate of interest (coupon rate) on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (3 years after the purchase)?arrow_forward
- Find the value of P in the following cash flow. i-5% per annum. ▲$1500 0 1 2 3 4 5 6 7 8 A₁-$1000 A₂-$800 interest rate (IR): 5% interest rate (IR): 5% n n A/F 1 1 1.0000 2 2 0.4878 3 3 0.3172 4 4 0.2320 5 5 0.1810 6 0.1470 7 0.1228 0.1047 9 0.0907 10 0.0795 6 7 8 9 10 single payment FIP PIF 1.0500 0.9524 1.1025 0.9070 1.1576 0.8638 1.2155 0.8227 1.2763 0.7835 1.3401 0.7462 1.4071 0.7107 1.4775 0.6768 1.5513 0.6446 1.6289 0.6139 uniform payment series A/P FIA 1.0500 1.0000 0.5378 2.0500 0.3672 3.1525 0.2820 4.3101 0.2310 5.5256 0.1970 6.8019 0.1728 8.1420 0.1547 9.5491 0.1407 11.0266 0.1295 12.5779 PIA 0.9524 1.8594 2.7232 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217arrow_forward4-66. Transform the cash flows on the left-hand side of the accompanying diagram (see Figure P4-66) to their equivalent amount, F, shown on the right-hand side. The interest rate is 8% per year. 100 100 100 100 012 3 4 End of Year 100 100 5 6 7 ⇒ 0 1 2 3 End of Year 4 F 5arrow_forwardA lathe for a machine shop costs P60, 000 if paid in cash, On the installment plan, a purchaser should pay P20, 000 down payment and 10 quarterly instaliments, the due at the end of the first year after purchase. If money is worth 15% compounded quarterly. The quarterly installments value is: A. 5.239.15 B. 4.439.18 C. 6.439.20arrow_forward
- A loan of P50T whose interest is 15% compounded semiannually, is to be discharged by a series of 10 semiannual payments, the 1st payment to be made 6 months after consummation of the loan. The 1st 6 payments will be P5T each, while the remaining 4 payments will be equal & of such amount that the final payment will liquidate the loan. What is the PV of the 1st 6 payments? a. P21,304.489 b. P23469.232 c. P2130.449 d. P31,936.854arrow_forwardengineering economy 1.) Accumulate P 5,000.00 for 10 years at 8% compounded monthly. 2.) What is the accumulated value of a payment of P12,500.00 at the end of each year for 9 years with interest at 5% compounded annually? 3.) Consider a project which involves the investment of P100,000.00 now and P100,000 at the end of one year. Revenues of P150,000 will be generated at the end of years 1 and 2. What is the net present value of this project if the annual interest rate is 10%?arrow_forwardEesE family borrows P600,000 for the annual JS Promenade, money is 12% compounded annually, agreeing to repay the loan in 15 equal payment. What is the value of equal payment? a. P214,285.71 b. P109,617.75 c. None of these d. P88,094.54arrow_forward
- 2) compounded monthly. The lender has agreed to the following payment scheme. $500 per month for the first year and $1,500 per month for the second year and an additional lump sum payment at the time of the last monthly payment to pay off any remaining loan amount. Determine the amount of the lumpsum payment. Russ borrows $25,000 to make a down payment on a new home. The interest rate is 6% per yeararrow_forwardAssume that you want to deposit an amount P into an account 2 years from now in order to be able to withdraw $400 per year for 5 years starting 3 years from now. Assume that the interest rate is 16% per year. Calculate the value of P ? Select one: a. 1,785.8 b. 2,452.2 c. 1309.71arrow_forward3. Lisa plans to retire on her 61st birthday. On her 22nd birthday, she will start saving PA per year for 40 years. Starting on her 62nd birthday, she plans on withdrawing P100,000 and will continue these annual withdrawals until the account is exhausted on her 85th birthday. If Lisa's bank account pays 3% per year, what annual amount of PA will she need to invest in her bank account to achieve her retirement goal?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:PEARSON
Engineering 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 Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial 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