Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 40P
To determine
Calculate the compound interest rate.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
In order to make CDs look more attractive than they really are, some banks advertise that
their rates are higher than their competitors', but the fine print says that the rate is a simple
Interest rate. If a person deposits $7,500 at 3% per year simple interest, what compound
Interest rate would yield the same amount of money in 3 years?
The compound Interest rate that would yield the same amount of money in 3 years is
9.273 %.
i need the answer quickly
To make CDs look more attractive as an investment than they really are, some banks advertise that their rates are higher than their
competitors' rates; however, the fine print says that the rate is based on simple interest. If you were to deposit $30,000 at 9% per year
simple interest in a CD, what compound interest rate would yield the same amount of money in 3 years?
The compound interest rate that would yield the same amount of money in 3 years is
1% per year.
Chapter 1 Solutions
Engineering Economy
Ch. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - Prob. 10P
Ch. 1 - Prob. 11PCh. 1 - Prob. 12PCh. 1 - Prob. 13PCh. 1 - Prob. 14PCh. 1 - Prob. 15PCh. 1 - Prob. 16PCh. 1 - Determine the amount of money FrostBank might loan...Ch. 1 - Prob. 18PCh. 1 - Prob. 19PCh. 1 - Prob. 20PCh. 1 - Prob. 21PCh. 1 - Prob. 22PCh. 1 - Prob. 23PCh. 1 - Prob. 24PCh. 1 - To attract new customers, EP Employees Credit...Ch. 1 - Prob. 26PCh. 1 - Prob. 27PCh. 1 - Prob. 28PCh. 1 - Prob. 29PCh. 1 - Prob. 30PCh. 1 - Prob. 31PCh. 1 - Prob. 32PCh. 1 - State University tuition and fees can be paid...Ch. 1 - Prob. 34PCh. 1 - Prob. 35PCh. 1 - Prob. 36PCh. 1 - Prob. 37PCh. 1 - Prob. 38PCh. 1 - Prob. 39PCh. 1 - Prob. 40PCh. 1 - Prob. 41PCh. 1 - Prob. 42PCh. 1 - Prob. 43PCh. 1 - What is the weighted average cost of capital for a...Ch. 1 - Prob. 45PCh. 1 - Prob. 46PCh. 1 - Prob. 47PCh. 1 - Prob. 48ESCh. 1 - Prob. 49ESCh. 1 - Prob. 50ESCh. 1 - Prob. 51ESCh. 1 - Prob. 52APQCh. 1 - Prob. 53APQCh. 1 - Prob. 54APQCh. 1 - Prob. 55APQCh. 1 - Prob. 56APQCh. 1 - Prob. 57APQCh. 1 - Prob. 58APQCh. 1 - Prob. 59APQCh. 1 - Prob. 60APQCh. 1 - Prob. 61APQCh. 1 - Prob. 1CSCh. 1 - Prob. 2CSCh. 1 - You developed an interest in the LCOE relation and...
Knowledge Booster
Similar questions
- Find the numerical value of the following factors: (P/A, 2.5%,10) = (F/A, 1%,45) = (A/P, 5%,2) = (A/F, 6%,15) = (PIA, 7%,4.5) = (F/A, 8%,7) = (A/P, 9%,14) = (A/F, 10%,18) = (F/P, 11.5%,20) = (P/F, 0.45%,12.5) = Note: Round to two decimal places.arrow_forwardCitizens Bank of Toronto advertises an APR of 12% compounded monthly for collateral loans. What is the APY? Also, write the spreadsheet function to display the APY.arrow_forwardWhat is the amount of interest earned on $5,000 for three years at 8% simpleinterest per year?arrow_forward
- The tabulated factors stop at n = 100. how can they be used to calculate (P/F,i,150) and (P/F,i,200)?arrow_forwardE.Z. Money, who owns a chain of nightclubs, needs to borrow $20,000 to remodel the local dive. Ima Shark offers to loan the $20,000 to Money for 24 months. Money must make monthly payments of $1118. Determine the loan’s (a) monthly interest rate and (b) effective annual interest rate. Use interpolation method.arrow_forwardA debt of RM100,000 today is to be paid by payments of RM20,000, RM30,000, RM15,000, and the final amount of RM X, at the end of the 2nd year, 4th year, 6th year, and 8th year, respectively. Given the interest rate is 4% compounded semiannually. (a) Draw a time diagram to illustrate the equation of value. (b) Find X. 3.arrow_forward
- Nicholas made a deposit of $5,000 in a savings account that earns 2% per year. What is the maximum amount he can withdraw after 21 years?arrow_forwardSuppose Misael has a son and wants to leave him $50,000 for his studies. He has $15,000 and will put it in an account yielding 15% per month. How many years will his child have to wait if he did the counting once the child is born?arrow_forwardWhat is the true effective annual rate of a credit card plan that charges 1.5% per month on an unpaid balance?arrow_forward
- A savvy investor paid $5,500 for a 20-year $10,000 mortgage bond that had a bond interest rate of 8% per year, payable quarterly. Three years after he purchased the bond, market interest rates went down, so the bond increased in value. If the investor sold the bond for $11,500 three years after he bought it, what rate of return did the investor make per quarter and per year (nominal)? The rate of return per quarter is%. The rate of return per year is%.arrow_forwardA 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!arrow_forwardExplain neatlyarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education