In order to find the future worth, F, from a present amount, P, 5 years from now at an interest rate of 12% per year, compounded quarterly, what interest rate must be used in the F?P factor, (F?P,i%,n), when n is (a) 5, (b) 10, and (c) 20?
What will be an ideal response?
(a) Since n is in years, need effective i/year
i/year = (1 + 0.12/4) 4 - 1
= 12.551%
(b) Since n is semiannual periods, need effective i/6-mths
i/6-mths = (1 + 0.06/2) 2 – 1
= 6.09%
(c) Since n is quarters, need i/quarter
i/quarter = 0.12/4
= 3%
You might also like to view...
A(n) ____ changes AC current into DC current.
A. integrated circuit B. transistor C. bridge rectifier D. inductor
All of the following are considered job factors that impact the productivity of excavation and backfilling operations EXCEPT ________.
A. type of material excavated or backfilled B. access to or around site C. project size and complexity D. quality of job labor
How does the heating-cycle charge compensator differ during the heating and cooling cycles?
A) Less coolant needs to be circulated during the heating cycle. B) Most of the refrigerant leaves during the cooling cycle. C) The temperature of the coolant is lower during the cooling cycle. D) Most of the refrigerant leaves during the heating cycle.
Which statement below is FALSE?
A) Excessive lateral runout can cause a tramp-type vibration B) Excessive radial runout can cause a tramp-type vibration C) A tire out of balance statically can cause a tramp-type vibration D) A tire out of balance dynamically can cause a shimmy-type vibration