Exam 20: Engineering Economics

If you deposit $1000 into an account that pays 3% compounded monthly, what would be the value in the account after 10 years?

What interest rate, compounded quarterly, would cause an investment to double in twelve years?

How much money will you have available to you after four years if you put aside $120 a month in an account that gives you 3% interest compounded monthly?

If you put $4000 in a CD (certificate of deposit), what fixed interest rate compounded quarterly would yield $5000 at the end of three years?

What is the effective interest rate corresponding to the nominal rate of 5% compounded semiannually?

How much do you have to put away each month, at 3% compounded monthly, to have $5000 in 5 years?

There are many different types of bonds, but basically, they are loans that investors make to government or corporations in return for some gain.

The Straight Line and the Modified Accelerated Cost Recovery System (MACRS) are examples of

If you were to take out a $10,000 student loan for 5 years, and promise to pay 4% simple interest, how much interest would you pay at the end of the fifth year?

Imagine that as an engineering intern you have been assigned the task of selecting a motor for a pump.After reviewing motor catalogs you narrow your choice to two motors that are rated at 1.5 kW.Additional information collected is shown in an accompanying table.The pump is expected to run 4200 hours every year.After checking with your electric utility company, you determine the average cost of electricity is about 10 cents per kWh.Based on the information given here, which one of the motors will you recommend to be purchased? Assume i = 8%.

Economic factors always play important roles in engineering design decision making.

What is the effective interest rate corresponding to the nominal rate of 5% compounded quarterly?

In engineering, the term that refers to the sum of all costs that are associated with a structure, a service, or a product during its entire life span is

If you deposit $100 into an account that pays 6% simple interest, what would be the value in the account after 10 years?

If you deposit $1000 into an account that pays an interest rate that is compounded annually, what is the interest rate if there is $1343.91 in the account after 10 years?

When the interest paid on the initial principal also collects interest, this is called

If you deposit $1000 into an account that pays 3% interest compounded annually, what would be the value in the account after 10 years?

The percentage of par value that is paid to the bond holder at regular intervals is known as

When a bond is issued, it will have

If you were to take out a $10,000 student loan for 5 years, and promise to pay 4% interest compounded annually, how much interest would you pay?