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A woman borrowed $2000 and agreed to repay it at the end of 3 years, together with 10% simple interest per year. How much will she pay 3 years hence?
Calculate the effective annual interest rates the credit company is charging in both cases Contributed by D. P. Loucks, Cornell University.
Jim Duggan made an investment of $10,000 in a savings account10 years ago. How much is this investment worth now?
Assuming a 20-day compounding period, the 2% deduction for prompt paymentis equivalent to what effective annual interest rate?
What nominal annual interest rate did Mr. Sansome receive on his investment in stock? What effective annual interest rate did he receive?
Based on a 6-month interest period, compute the nominal annual interest rate and the effective annual interest rate.
At the Central Furniture Company, customers who buy on credit pay an effective annual interest rate. What is the nominal annual interest rate that they pay?
A bank advertises it pays 7% annual interest, compounded daily, provided money is left in account for 4 years. What is the effective annual interest rate?
A local store charges 11/2% each month on the unpaid balance for its charge account. What nominal annual interest rate is being charged?
If the nominal annual interest rate is 12% compounded quarterly, what is the effective annual interest rate?
A thousand dollars is invested for 7 months at an interest rate of 1% per month. What is the nominal interest rate? What is the effective interest rate?
A sum of money Q will be received 6 years from now. At 5% annual interest. At the same interest rate, what would be the value of Q in 10 years?
What rate of return did Mrs. Whitney receive on the investment? Was the rate of return really as high as you computed in (a)? Explain.
How much additional interest would a man obtain from the out-of-town bank over the local bank?
If the same sum of money could be borrowed for the same period at an interest rate of 12% per year, how much could be saved in interest charges?
A sum of money invested at 2% per 6-month period (semiannually), will double in amount in approximately how many years?
In 1995 an anonymous private collector purchased a painting by Picasso entitled Angel Fernandez. What rate of return did they receive on the $600 investment?
If $100 at Time "0" will be worth $110 a year later and was $90 a year ago, compute the interest rate for the past year and the interest rate next year.
Define the difference between a cash cost and a book cost. Is engineering economic analysis concerned with both types of cost?
Develop a set of costs that you could classify as recurring and others that could be classified as nonrecurring.
You are reevaluating the pump choice that was made last year by your boss. What criteria should you use? Which choice would you recommend, and why?
There is no convenient gym at the new location. What costs and intangible consequences are relevant to your decision? What should you do?
What is the book cost of the stainless steel pump? What is the opportunity cost of the stainless steel pump?
An assembly line can produce 90 units per hour. What are the average and marginal costs per unit for the following daily quantities?
How many units must be produced and sold each year to break even? Contributed by Paul R. McCright, University of South Florida.