The simple interest rate per year that will accumulate the same amount of money in 2 years as a compound interest rate of 20% per year is closest to:
(a) 20.5%
(b) 21%
(c) 22%
(d ) 23%
F in year 2 at 20% compound interest = P(1.20)(1.20) = 1.44P
For simple interest, F = P + Pni = P(1 + ni)
P(1 + 2i) = 1.44P
(1 + 2i) = 1.44P
i = 22%
(c) 22%
You might also like to view...
All of the following statements are true EXCEPT:
A. shocks often fail at the same rate. B. a defective shock absorber can cause a tire to "hop." C. a leaking shock can be the result of a defective seal or from lowering a vehicle too far. D. a damaged piston rod on a Macpherson strut causes a leak. This can result from holding the rod with pliers during installation of the top nut.
A boot in a duct system is a fitting used ____.
A. at the plenum B. between the trunk duct and the branch duct C. between the branch duct and the supply register D. to eliminate vibration between the unit and the duct
A small industrial contractor purchased a warehouse building for storing equipment and materials that are not immediately needed at construction job sites. The cost of the building was $100,000 and the contractor has just made an agreement with the seller to finance the purchase over a 5-year period. The agreement states that monthly payments will be made based on a 30-year repayment schedule of interest on the unrecovered balance of the principal; however, the total remaining balance of principal and interest at the end of year 5 must be paid in a lump-sum “balloon” payment. What is the size of the balloon payment, if the interest rate on the loan is 0.5% per month?
What will be an ideal response?
Composites may be classified into
a. polymer-matrix composites b. metal-matrix composites c. ceramic-matrix composites d. all of above