ENGR 310 Lecture Notes - Lecture 6: Savings Account, Interest
Document Summary
Econ 310 engineering economics exercise 1: suppose that is deposited at the end of every year into an account paying interest of 7% per year. At the end of twelve years the account will be worth approximately . A = 650, i = 7%, n = 12 years. F = ,627. 53: the rule of 72 says that, at 9% interest, money will double in _______ years. Rule of 72: i = 9% n to double = ? n = 72/9 = 8: suppose that ,300 is deposited into an account paying simple interestof. At the end of five years, the account will be worth . P = 1300 isingle = 6% n = 5 years. F = 1690: if the interest paid on an account is 12% compounded annually, now is basically equivalent to ,000 five years from now. i = 12%
