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 30P
To determine

The profit.

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A customer deposits his money in a bank for 10 million dollars for 2 years. If the deposit interest rate offered by the bank is 8% per year, and the interest calculation system uses a compound interest system that is paid every 3 months. Calculate the value of the customer's deposit at the end of the second year!
ENGINEERING ECONOMY Company C paid $2 million for a loan it took one year ago at 10% per year. How much money was received by Company C one year ago?
A new engineering graduate who started a consulting business borrowed money for 1 year to furnish the office. The amount of the loan was $45,800, and it had an interest rate of 10% per year. However, because the new graduate had not built up a credit history, the bank made him buy loan-default insurance that costs $900. In addition, the bank charged a loan set-up fee of 1% of the loan principal. What was the effective interest rate the engineer paid for the loan?
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