IE 3201 Chapter : Fund Eng Econ Ch3
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3. 1) (a) r = 1. 5% 12 = 18% (b) 1 19. 56: nominal interest rate: r = 0. 95% 12 11. 40: effective annual interest rate: ai = + (1 0. 0095) Solve by excel goal seek for i = 0. 74385% per week (a) nominal interest rate: r = 0. 74385% 52 38. 6802% (b) effective annual interest rate: (1 0. 0074385) ai = + = (1+ i) i = 8% per week (a) nominal interest rate: r = 8% 52 = 416% 3. 9) i = 0. 95% per month r = 0. 95 12 = 11. 4% ,000 = . 78( p / a,i,36) ( p / a,i,36) = 30. 901155 i = 0. 85% per month r = 0. 85 12 = 10. 2% ,000 = . 66( p / a,i,48) ( p / a,i,48) = 41. 1198 i = 0. 65% ia = (1+ 0. 0065)12 1. 12 1 = 0. 501% i = e. 3. 13) what will be the amount accumulated by each of these present investments? (a) (b) (c)
