ECOR 3800 Study Guide - Final Guide: Mansfield, Horsepower
10 Apr 2014
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4. 36 a couple is planning to finance its three-year-old son"s college education. Money can be deposited at 6% compounded quarterly. 3. 4 you are about to borrow ,000 from a bank at an interest rate of 9% compounded annually. You are required to make five equal annual repayments in the amount of ,571 per year, with the first repayment occurring at the end of year 1. Show the interest payment and principal payment in each year. 5. 36 an electric motor is rated at 10 horsepower (hp) and costs . Its full load efficiency is specified to be. Each motor is expected to have a 15-year life. At the end of 15 years, the first motor will have a salvage value of and the second motor will have a salvage value of . 11. 8 the purchase of a car requires a ,000 loan to be repaid in monthly installments for four years at 12% interest compounded monthly.
