Given an effective interest per annum of 20%, compare the compound amount at the end of 10 years of $5,200 a year if the payments are: a) End-of-year b) Weekly (assume interperiod interest) c) Continuous (assume interperiod interest)

Given an effective interest per annum of 20%, compare the compound amount at the end of 10 years of $5,200 a year if the payments are: a) End-of-year b) Weekly (assume interperiod interest) c) Continuous (assume interperiod interest)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4. Given an effective interest per annum of 20%, compare the compound amount at the end of 10 years of $5,200 a year if the payments are: a) End-of-year b) Weekly (assume interperiod interest) c) Continuous (assume interperiod interest)

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