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 47P

(a):

To determine

Calculate the annual value.

(b):

To determine

Calculate the new annual value.

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What is the present worth of each of the given series of payments?(a) $2.700 at the end of each six-month period for 10 years at 8% compounded semiannually.(b) $10,000 at the end of each quarter for five years at 12% compounded quarterly.(c) $14.000 at the end of each month for eight years at 6% compounded monthly.
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Which of the following compounding rates is equivalent to an effective interest rate of 2.75% per year?     2.7% compounding six-monthly     2.75% compounding yearly     2.6% compounding quarterly     2.6% compounding monthly
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