Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 14

Identify the payment period and compounding period for the following situations:
a. Deposits are made each quarter into an account reserved for purchasing new equipment two years from now. The interest rate on the deposits is 12% per year compounded monthly.
b. The Williams family takes a $10,000 withdrawal from a second retirement package each 6 months to pay property and income taxes. The funds are invested in a fixed return annuity that pays 7% per year.