Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 3, Problem 33P
To determine

Calculate the capital Interest payment.

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If you borrowed $24,000 at 12% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?
You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be made over a four-year period, with each payment made at the end of the corresponding year. What is the amount of the annual payment? What is the interest payment for the second year?
An individual makes six annual deposits of $2,000 in a savings account that pays interest  at a rate of 4% compounded annually. Two years after making the last deposit, the  interest rate changes to 7% compounded annually. Ten years after the last deposit the  accumulated money is withdrawn from the account. How much is withdrawn?
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