Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 75APQ
To determine
Calculate the interest rate.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
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?
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.
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
Knowledge Booster
Similar questions
- 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?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
- How can the conversion be done from Constant to Actual Dollars?arrow_forwardA bond pays coupons in perpetuity on 1st June and 1st December each year. The coupon rate is 3.5% per annum. If you purchase this bond on 20th August 2009, calculate the price per Rs. 100 nominal you get with an effective rate of return of 10% per annum.arrow_forwardMr. Haitham takes a loan from Bank Muscat for which the repayment period is 10 months. This is an example of: Â A)Investment B)Medium-term loan C)Long term loan D)Short term loanarrow_forward
- Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The in terest rate is 10% per year.  a. $120,573  b. $220,573  c. $520,573  d. $420,573  e. $320,573arrow_forwarda) A person plans to deposit 100000 in the first year in his savings account. He reduces his deposit amount by 2000 thereafter for next 12 years. The bank gives 7.5% interest compounded annually. Find the maturity value of the deposit. b) Given the market demand and supply curve of a product Q = 10000 -P (Demand) Q 9000 + 4P (Supply) (i) Find the equilibrium price and quantity (ii) If a GST of 20 per unit is imposed on the product find its effect on the equilibrium price. Is the buyer less elastic? Why? (iii) Draw a suitable diagram to demonstrate the effect of the GST on the price of the product.arrow_forwardThe price of a car that you want is $70,000 today. Its price is expected to increase by $3300 per year. You now have $35,000 in an investment which isearning 15% per year. The number of years before you have enough to buy the car without borrowing any money is closest to:a. 3 yearsb. 5 yearsc. 7 yearsd. 9 yearsarrow_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:PEARSONEngineering 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 LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial 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