Answered: 2. A service car whose cash price was ?…

2. A service car whose cash price was ? 540,000 was bought with a down payment of ? 162,000 and monthly of ?10,874.29 for five years. What was the rate of interest compounded monthly?

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

5th Edition

ISBN:9781305084766

Author:Saeed Moaveni

Publisher:Saeed Moaveni

Chapter20: Engineering Economics

Section: Chapter Questions

Problem 12P

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Concept explainers

Engineering Economics Principles

Engineering economics (engineering economy) is a sub-field of economics to study the use and application of the economic principles in the engineering analysis of decisions along with the systematic evaluation of the advantages of project costs inclusive of engineering design and analysis. It emphasizes microeconomics (a subset of economics) for researching the behavior of people in the decision-making process of assigning and determining multiple alternatives to the usage of some of the restrained resources and merging economic theory and engineering practice in a practical manner. It depicts the logical framework of economics in addition to the analytical application of statistics and mathematics.

Question

Kindly show me the solution. Thank you.

2. A service car whose cash price was ?
540,000 was bought with a down payment
of ? 162,000 and monthly of ?10,874.29 for
five years. What was the rate of interest
compounded monthly?

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