To raise money for a new business, a friendasks you to loan her some money. Sheoffers to pay you $3,000 at the end of fouryears. How much should you give her nowif you want to earn 12% interest per yearon your money?Select one:O a. 1,906.56O b. 6,034.08O c. 1,859.23O d. 1,491.54O e. 4,720.56How much should be put in an investmentwith a 10% effective annual rate today tohave $10,000 in five years? (Using thefactor table for 10%)Select one:O a. $ 7,285O b. $ 8,285O c. We need more data to solve thisquestionO d. $ 6,209O e. $ 6,285Bank X is offering simple interest of 5% peryear on savings. Bank Y is offering 6% peryear compound interest. For $1,000principal which offer is more attractive ifwe wish to keep our savings in the bank for3 years? Choose the value for yourdecision.Select one:O a. 1,180.00O b. 1,191.02O c. 1,157.63O d. 1,150.00O e. 1,250.70

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To raise money for a new business, a friend asks you to loan her some money. She offers to pay you $3,000 at the end of four years. How much should you give her now if you want to earn 12% interest per year on your money? Select one: O a. 1,906.56 O b. 6,034.08 O c. 1,859.23 O d. 1,491.54 O e. 4,720.56

To raise money for a new business, a friend asks you to loan her some money. She offers to pay you $3,000 at the end of four years. How much should you give her now if you want to earn 12% interest per year on your money? Select one: O a. 1,906.56 O b. 6,034.08 O c. 1,859.23 O d. 1,491.54 O e. 4,720.56

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

To raise money for a new business, a friend
asks you to loan her some money. She
offers to pay you $3,000 at the end of four
years. How much should you give her now
if you want to earn 12% interest per year
on your money?
Select one:
O a. 1,906.56
O b. 6,034.08
O c. 1,859.23
O d. 1,491.54
O e. 4,720.56
How much should be put in an investment
with a 10% effective annual rate today to
have $10,000 in five years? (Using the
factor table for 10%)
Select one:
O a. $ 7,285
O b. $ 8,285
O c. We need more data to solve this
question
O d. $ 6,209
O e. $ 6,285
Bank X is offering simple interest of 5% per
year on savings. Bank Y is offering 6% per
year compound interest. For $1,000
principal which offer is more attractive if
we wish to keep our savings in the bank for
3 years? Choose the value for your
decision.
Select one:
O a. 1,180.00
O b. 1,191.02
O c. 1,157.63
O d. 1,150.00
O e. 1,250.70

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