please answer this it is Multiple Chooses Question 4 [Fill in the blank] The x-a

ID: 1093281 • Letter: P

Question

please answer this it is Multiple Chooses

Question 4

[Fill in the blank] The x-axis of a cash flow diagram represents________________.

a- the amount of money

b- the number of time periods

c- the arimatic gradient

d- the geometric gradient

_____________________________________

Which of the following results in a valid combination of time and interest rates?

a- n= 5 years* 4 months/quarter

i= 3%/month

b- n= 5 years * 4 quarters/year

i = 3%/quarter

c- n=20 quarters * 4 quarters/year

i= 3%/quarter

d- n= 3 quarters * 4 months/quarter

i = 3%/month

Engineering Economy

Question 4

[Fill in the blank] The x-axis of a cash flow diagram represents________________.

b- the number of time periods

Explanation: X axis is always time and y axis is always the dollar amount.

Which of the following results in a valid combination of time and interest rates?

b- n= 5 years * 4 quarters/year

i = 3%/quarter

Explanation - The others do not work and need to match up with the interst rate per period of time.

In this case (5 years)( 4 quaters / year) = 20 quarters. We must end up with quarters as the time period since the interest rate is per quarter.

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