Engineering Economy
Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
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Chapter 1, Problem 14P
To determine

Calculation of interest rate.

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Callahan Construction borrowed $2.6 million to finance the construction of an entertainment complex in a smart community development project. The company made “interest only” payments of $312,000 each year for 3 years and then repaid the principal in a single lump sum payment of $2.6 million. What was the interest rate on the loan?
1.13 RKI Instruments borrowed $4,800,000 from a private equity firm for expansion of its facility for manufacturing carbon monoxide monitors. The company repaid the loan after 1 year with a single payment of $5,184,000. What was the interest rate on the loan?
what was the amount of the original loan? 4. How many years would it take for an investment of $280,000 to cumulate to at least $425,000 at 15% per year interest? 5 Valtro Electronic Systems Inc set aside a lump sum of money 4 years ago in
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