Homework Answers
Nominal annual rate compounded quarterly = 24%
Quarterly interest rate = 24%/4 = 6% = 0.06
Effective annual interest rate = (1 + 0.06)4 - 1 = 0.2625 = 26.25%
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Engineering economics
Engineering Economics Test Fall 2018 NAME 1. (Question a). What is the effective annual...
Engineering Economics Question: A home loan is taken out for $162,000. The loan is for 30...
Engineering Economics Question: A home loan is taken out for $162,000. The loan is for 30 years, with a nominal annual rate of 7.5%, resulting in monthly payments of $1,132.73. What will the interest portion of the first payment be?
a. If you are told that your effective annual interest rate is 10%, what is the nominal...
a. If you are told that your effective annual interest rate is 10%, what is the nominal interest rate compounded quarterly? b. What is the effective annual interest rate if the nominal interest rate is 7%, and the frequency of compounding is once a month? c. How much time would it take for your principal to quadruple if the effective annual interest rate is 5%, and the frequency of compounding is once a year?
Engineering economics #7 & 8 The cost to mail a 1-ounce letter was 15 cents in...
Engineering economics
#7 & 8
The cost to mail a 1-ounce letter was 15 cents in 1980 and 42 cents in 2008. What was the differential rate of inflation for postage? 7. A deposit of$1,000 is made in a bank account that pays 24% interest per year compounded quarterly. How much money will be in the account after 10 years? 8.
Question 10 10 pts What is the effective annual interest rate if the nominal annual rate...
Question 10 10 pts What is the effective annual interest rate if the nominal annual rate is 27% per year compounded monthly? 2.3% 270% o 32.3% 30,6%
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What is the effective annual interest rate equivalent of a nominal rate given as 12% compounded...
What is the effective annual interest rate equivalent of a nominal rate given as 12% compounded quarterly?
this is gor engineering economics (20) 1. (a) (10) What is an intangible factor in an...
this is gor engineering economics
(20) 1. (a) (10) What is an intangible factor in an engineering economic analysis? (b) (10) Draw the cash flow diagram for a loan of $1000 to be repaid at the end of three months with interest if the simple interest rate is 8% per year. Include all amounts on the cash flow diagram.
For nominal interest rate of compounding is continuous. Show your solution 3. %, effective annual interest...
For nominal interest rate of compounding is continuous. Show your solution 3. %, effective annual interest rate will be 12% when 4. Under what conditions APR will be different from EAR? L. Shark is designing a new account that pays interest quarterly. They wish to pay effectively, a 16% per year on this account. L. Shark desires to advertise the annual percentage rate on this new account (and not the effective rate, since their competitors state their interest on an...
For nominal interest rate of compounding is continuous. Show your solution 3. %, effective annual interest...
For nominal interest rate of compounding is continuous. Show your solution 3. %, effective annual interest rate will be 12% when 4. Under what conditions APR will be different from EAR? L. Shark is designing a new account that pays interest quarterly. They wish to pay effectively, a 16% per year on this account. L. Shark desires to advertise the annual percentage rate on this new account (and not the effective rate, since their competitors state their interest on an...
2. What nominal annual interest rate compounded monthly is equivalent to an effective annual interest rate...
2. What nominal annual interest rate compounded monthly is equivalent to an effective annual interest rate of 8% per year for the first 10 years followed by a nominal annual interest rate of 5% compounded daily for the second 10 years? Give your answer as a percent rounded to three decimal places. Answer:
Engineering Economics Question: A home loan is taken out for $162,000. The loan is for 30 years, with a nominal annual rate of 7.5%, resulting in monthly payments of $1,132.73. What will the interest portion of the first payment be?
Engineering economics
#7 & 8
The cost to mail a 1-ounce letter was 15 cents in 1980 and 42 cents in 2008. What was the differential rate of inflation for postage? 7. A deposit of$1,000 is made in a bank account that pays 24% interest per year compounded quarterly. How much money will be in the account after 10 years? 8.
Question 10 10 pts What is the effective annual interest rate if the nominal annual rate is 27% per year compounded monthly? 2.3% 270% o 32.3% 30,6%
this is gor engineering economics
(20) 1. (a) (10) What is an intangible factor in an engineering economic analysis? (b) (10) Draw the cash flow diagram for a loan of $1000 to be repaid at the end of three months with interest if the simple interest rate is 8% per year. Include all amounts on the cash flow diagram.
For nominal interest rate of compounding is continuous. Show your solution 3. %, effective annual interest rate will be 12% when 4. Under what conditions APR will be different from EAR? L. Shark is designing a new account that pays interest quarterly. They wish to pay effectively, a 16% per year on this account. L. Shark desires to advertise the annual percentage rate on this new account (and not the effective rate, since their competitors state their interest on an...
For nominal interest rate of compounding is continuous. Show your solution 3. %, effective annual interest rate will be 12% when 4. Under what conditions APR will be different from EAR? L. Shark is designing a new account that pays interest quarterly. They wish to pay effectively, a 16% per year on this account. L. Shark desires to advertise the annual percentage rate on this new account (and not the effective rate, since their competitors state their interest on an...
2. What nominal annual interest rate compounded monthly is equivalent to an effective annual interest rate of 8% per year for the first 10 years followed by a nominal annual interest rate of 5% compounded daily for the second 10 years? Give your answer as a percent rounded to three decimal places. Answer:
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