Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 3, Problem 72APQ
To determine
The greater payment period than compounding period.
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It is the amount payable on the maturity date.
Q3
rates and the period in which the X value is calculated and then calculate the X value.
Draw the cash flow diagrams corresponding to the formulas given below. Specify the interest
a. X = 1000 – 1000(A/P,8%,9)[[P/F,8%,3) + (P/F,8%,5) + (P/F,8%,8)]
b. X = [300(F/A,%10,3)- 200(F/G,%10,3)](F/P,%10,1) + [300(F/A, %10,3) + 200(F/G,%10,3)](P/
F,%10,3)
Calculate the effective rate corresponding to each of the following rates:(a) 9% compounded semi-annually(b) 9% compounded quarterly(c) 9% compounded bi-monthly(d) 9% compounded monthly(e) 9% compounded continuously
Chapter 3 Solutions
Basics Of Engineering Economy
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Convert an interest rate of 1.5% per month into a...Ch. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10P
Ch. 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 - Erbitux is a colorectal cancer treatment drug that...Ch. 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. 58PCh. 3 - The initial cost of a pulverized coal cyclone...Ch. 3 - Prob. 60PCh. 3 - Prob. 61PCh. 3 - Prob. 62PCh. 3 - Prob. 63PCh. 3 - Prob. 64PCh. 3 - Prob. 65PCh. 3 - Prob. 66PCh. 3 - Prob. 67PCh. 3 - Prob. 68APQCh. 3 - Prob. 69APQCh. 3 - Prob. 70APQCh. 3 - Prob. 71APQCh. 3 - Prob. 72APQCh. 3 - Prob. 73APQCh. 3 - Prob. 74APQCh. 3 - Prob. 75APQCh. 3 - Prob. 76APQ
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- Accumulate P16,500 for 2 years and 10 months at (a) 13% compounded monthly, and (b) 13% compounded continuously.arrow_forwardA bank advertises quarterly compounding for business checking accounts. What payment and compounding periods are associated with deposits of daily receipts?arrow_forwardWhich of the two rates would yield the larger amount in 1 year? (A) 2% compounded quarterly B) 2.02% compounded annuallyarrow_forward
- What type of interest is obtained when the nominal interest rate is divided by the number of compounding periods in a year? a effective interest rate per year b nominal interest rate per compounding period c effective interest rate per compounding period d nominal interest rate per yeararrow_forwardIt refers to the length of time over which interest is charged or earned. a Compounding Period b Payment Period c Effective Period d Nominal Periodarrow_forwardFind the APY in each of the following cases:(a) 10% compounded annually.(b) 9% compounded semiannually.(c) 12% compounded quarterly.(d) 7% compounded daily.arrow_forward
- A problem on the midterm exam asked you to calculate the monthly payment on a $15,000 car loan at an interest rate of 9% compounded monthly to be repaid over 60 months, where 9% is the nominal annual interest rate. Some students incorrectly used 9% as the monthly interest rate. A monthly interest rate of 9% is equivalent to what effective annual interest rate? (a) Effective annual interest rate = 9% (b) Effective annual interest rate = 9% per month x 12 months per year = 108% (c) Effective annual interest rate = 9% per month ÷ 12 months per year 0.75% (d) Effective annual interest rate = (1+ effective monthly rate)12 – 1 = (1.09)12 – 1 = 181%arrow_forwardFind the effective interest rate per payment period for an interest rate of 8%compounded monthly for each of the given payment schedule:(a) Monthly(b) Quarterly(c) Semiannually(d) Annuallyarrow_forwardwhat is the total compounding period for 6 years 9 months converted quarterly?arrow_forward
- fee cash flow diagramarrow_forwardYou purchased a winning ticket for a $5 million lottery which pays $500,000 immediately and the rest in 9 annual installments. A finance company called and offered you $3 million for it. Would you accept the offer if the rate is 10%arrow_forwardThe function f(x) = 900 represents the rate of flow of money in dollars per year. Assume a 20-year period at 4% compounded continuously. Find (A) the present value, and (B) the accumulated amount of money flow at t=20. (A) The present value is $ (Do not round until the final answer. Then round to the nearest cent as needed.)arrow_forward
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