It is from Engineering Economy 7th edition by Leland Blank and Anthony Tarquin.
ID: 1859358 • Letter: I
Question
It is from Engineering Economy 7th edition by Leland Blank and Anthony Tarquin.
Problem 2.22.
Find the numerical value of the following factors using (a) interpolation, (b) the formula, and (c) a spreadsheet function.
1. (F/P, 14%, 62)
2. (A/F, 1%, 45)
Problem 2.40
A person's credit score is important in determining the interest rate on a home mortgage. According to Consumer Credit Conseling Service, a home owner with a $100,000 mortgage and a 520 credit score will pay $110,325 more in interest charges over the life of a 30-year loan than a homeowner with the same mortgage and a credit score 720. How much higher would the interest rate per year have to be in order to account for this much difference in interest charges, if the $100,000 loan is repaid in a single lump-sum payment at the end of the 30 years?
Problem 2.50
The energy costs of a company involved in powder coating of outdoor furniture are expected to increase at a rate of $4000 per year. The cost at the end of the next year (year 1) is expected to be $13,000. How many years will it be from now before the equivalent annual cost is $16,000 per year, if interest is 8% per year?
Please help!
I would really like to see steps and have them explained...thanks so much!
Explanation / Answer
for question no 2.4) 100000 = 110 325 /(1+r)^30 implies r = 0.00328% must be higher 2.5) 4000 per year implies 4000 /365 =10.9589 per day definetely answer is less than 2 years so 16000 = 13000 / 1.08 + 13000 + 10.985*n / 1.08^1+n/365g) implies X = 300 days
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