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 66P
To determine

Calculate the value of interest rate.

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Explain the true effect of more frequent compounding on annual interest amounts?
Steve promises to pay Amanda $2,000 in four years and another $3,000 four years later  for a  loan of $2,000 from Sandy today.  What is the interest rate that Sandy is getting? Assume interest is compounded monthly.
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