Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 1, Problem 19P
To determine
Some ethical and economical issues from walking away from underwater loan.
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25
50
0-1-2-3-
μ
75
i = 10%
100
F
40
0- -1-
i= 10%
A
80
120
-2-3-4
A A A
(c)
(d)
{Answers: C = €109.45;A = €115;F = €276.37;
A = €60.78)
The local bank pays 4% interest on savings
deposits. In a nearby town, the bank pays 1% per
quarter. A man who has $3000 to deposit
wonders whether the higher interest paid in the
nearby town justifies driving there.
1. How much will the man receive after 2 years if
he used the local bank? The answer is closest to:
$3123
$3246
$3060
$3186
!
Required information
Consider the following factors.
1. (F/P,19%,34)
2. (A/G,23%,45)
Find the numerical values of the factors using linear interpolation.
The numerical value of factor 1 is
The numerical value of factor 2 is
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