Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 1, Problem 38P
a.
To determine
The interest rate on the loan.
b.
To determine
The interest charged at end of second year.
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Students have asked these similar questions
Richard Miyashiro purchased a
condominium and obtained a 20-
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interest rate of 8.20%. (Round your
answers to the nearest cent.)(a) What
is the mortgage payment? (b) What is
the total of the payments over the life
of the loan? (c) Find the amount of
interest paid on the mortgage loan
over the 20 years.
Suppose you take out a car loan of $15,000 with an interest rate of 15% compounded monthly. You will pay off the loan over 36 months with equal monthly payments.(a) What is the monthly interest rate?(b) What is the amount of the equal monthly payment?(c) What is the interest payment for the 15th payment?(d) What is the total interest paid over the life of the loan?
jerry bought a house for $400,000 and made an $80,000 down payment. the rest of the cost was paid with a 30 year loan. payments were paid monthly. the nominal annual interest rate was 6% after 10 years he sold the house and paid the remainder of the loan balance.
A- what was his monthly loan payment?
B- what was the loan payoff amount?
Chapter 1 Solutions
Basics Of Engineering Economy
Ch. 1 - Prob. 1PCh. 1 - Which of the following would be considered...Ch. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - What is meant by the term time value of money?
Ch. 1 - Prob. 11PCh. 1 - Of the fundamental dimensions length, mass, time,...Ch. 1 - Prob. 13PCh. 1 - When an interest rate statement does not include a...Ch. 1 - Prob. 15PCh. 1 - Prob. 16PCh. 1 - Prob. 17PCh. 1 - Prob. 18PCh. 1 - Prob. 19PCh. 1 - Prob. 20PCh. 1 - Prob. 21PCh. 1 - Prob. 22PCh. 1 - Prob. 23PCh. 1 - Prob. 24PCh. 1 - Prob. 25PCh. 1 - Prob. 26PCh. 1 - Prob. 27PCh. 1 - Prob. 28PCh. 1 - How many years does it take for an investment of...Ch. 1 - Prob. 30PCh. 1 - Prob. 31PCh. 1 - Prob. 32PCh. 1 - Prob. 33PCh. 1 - Prob. 34PCh. 1 - Prob. 35PCh. 1 - Prob. 36PCh. 1 - Prob. 37PCh. 1 - Prob. 38PCh. 1 - Prob. 39PCh. 1 - Prob. 40PCh. 1 - Prob. 41PCh. 1 - Prob. 42PCh. 1 - Prob. 43PCh. 1 - Prob. 44PCh. 1 - At 9% per year simple interest, 1000 is equivalent...Ch. 1 - Prob. 46PCh. 1 - Prob. 47PCh. 1 - Prob. 48PCh. 1 - Prob. 49PCh. 1 - Prob. 50PCh. 1 - Prob. 51PCh. 1 - Prob. 52PCh. 1 - Prob. 53PCh. 1 - Prob. 54PCh. 1 - Prob. 55PCh. 1 - Prob. 56PCh. 1 - Prob. 57PCh. 1 - Prob. 58PCh. 1 - Prob. 59PCh. 1 - Prob. 60PCh. 1 - Prob. 61PCh. 1 - Prob. 62PCh. 1 - Prob. 63PCh. 1 - Prob. 64PCh. 1 - Prob. 65PCh. 1 - Prob. 66PCh. 1 - Prob. 67PCh. 1 - Prob. 69APQCh. 1 - Prob. 70APQCh. 1 - Prob. 71APQCh. 1 - Prob. 72APQCh. 1 - An investment of 8,000 nine years ago has...Ch. 1 - Prob. 74APQCh. 1 - Prob. 75APQCh. 1 - Prob. 76APQCh. 1 - Prob. 77APQ
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Similar questions
- A bank is offering a loan of $10,000 with a nominal interest rate of 6% compounded monthly, payable in 72 months. There is a loan origination fee of 3% that is taken out from the loan amount. (a) What is the monthly payment? (b) What is the effective interest rate?arrow_forward1.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000 2.The simple interest on a $6500 loan at 15% for 9 months is. a)$731.25 b)$7312.50 c)$73.13 d)$2925 3. If we deposit $5000 in an account that pays 9% per year. Find the amount of simple interest earned during 8 months. a)$3000 b)$300 c)$360 d)$3600 4.The simple interest charged on a loan amount of $8500 for 2 years was $1275. What rate of interest was charged a)22.5% b)3.75% c)15% d)7.5% 5.What rate of simple interest will make a principal double itself in 6 years. a)16.67% b)8.33% c)33.33% d)4.16% 6.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000arrow_forwardYou need to borrow $250,000 right now and can repay the loan in 9 months. Since you want to pay as little interest as possible, which type of loan should you take? A B a discounted loan at 8% per annum a simple interest loan at 7% per annumarrow_forward
- Planning for your wedding which would take place 10 years from now, you started to deposit from today a lump sum money every quarter for 4 years at nominal interest of 8% so that you can withdraw $50,000 at your wedding day.a) Sketch the cash flow diagram for the above financial plan.b) Calculate the amount of money that has to be deposited every quarter.arrow_forward1.13 RKI Instruments borrowed $4,800,000 from a private equity firm for expansion of its facility for manufacturing carbon monoxide monitors. The company repaid the loan after 1 year with a single payment of $5,184,000. What was the interest rate on the loan?arrow_forwardWhich of the following is the preferable interest rate for investing your money?(i) 12% Compounded Semi-annually(ii) 12% Compounded Quarterly(iii) 12% Compounded Monthly(iv) 12% Compounded Dailyarrow_forward
- To purchase $14,700 worth of machinery for her business, Ivanna made a down payment of $1700 and took out a business loan for the rest. After 2 years of paying monthly payments of $576.18, she finally paid off the loan. (a) What was the total amount Ivanna ended up paying for the machinery (including the down payment and monthly payments)? (b) How much interest did Ivanna pay on the loan?arrow_forwardTim invested in a 3-year bond paying 4.7% simple interest. Upon maturity the bond was worth $2700. How much money did Tom invest?arrow_forwardProblem 9. You have $8430 in credit card debt. The interest rate on the unpaid balance is 27% compounded. You decide to pay off the debt in equal monthly payments at the end of each month. (i) What should the monthly payments be to have the account paid off at the end of 3 years? (ii) How much interest have you paid?arrow_forward
- You want to borrow $1500 at 8% and you are willing to pay $210 in simple interest.How long can you keep the moneyarrow_forwardI need assisstance with D,E, and F pleasearrow_forwardInstructions: Please attach complete solution for full credit and draw the cash flow diagram. Box your final answer/s.arrow_forward
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