EBK BASICS OF ENGINEERING ECONOMY
EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 8220102797123
Author: Blank
Publisher: YUZU
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Chapter 3, Problem 3P
To determine

Identify the compounding period.

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Identify the following interest rate statements as either nominal or effective: (a) 1.3% per month; (b) 1% per week, compounded weekly; (c) nominal 15% per year, compounded monthly; (d) effective 1.5% per month, compounded daily; and (e) 15% per year, compounded semiannually.
For an interest rate of 9% per year, compounded every 4 months, determine the nominal interest rate per (a) 8 months, (b) 12 months, and (c) 2 years.
a) If you are 20 years old, how much should invest today at a 12 per cent nominal interest rate- compounded annually-if you want to have a million dollars by the time you are 50 years old.  b) How much do you need to invest if the interest is compounded monthly? c) What is the effective annual rate for the compounding interval of part b?

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EBK BASICS OF ENGINEERING ECONOMY

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