Engineering Answers

A local store charges 11/2% each month on the unpaid balance for its charge account. What nominal annual interest rate is being charged? What is the effective interest rate?

If the nominal annual interest rate is 12% compounded quarterly, what is the effective annual interest rate?

One thousand dollars is borrowed for one year at an interest rate of 1% per month. If the same sum of money could be borrowed for the same period at an interest rate of 12% per year, how much could be saved in interest charges?

What sum of money now is equivalent to $8250 two years later, if interest is 4% per 6-month period?

A savings account earns 8% interest. If $1000 is invested, how many years is it until each of the following amounts is on deposit?
a. $1360
b. $2720
c. $4316
d. $6848

Situation 1
b) If $100 at Time “0” will be worth $110 a year later and was $90 a year ago, compute the interest rate for the past year and the interest rate next year.
c) Assume that $90 invested a year ago will return $110 a year from now. What is the annual interest rate in this situation?

How much must you invest now at 7.9% interest to accumulate $175,000 in 63 years?

Suppose that $2000 is deposited in an account that earns 6% interest. How much is in the account
a. after 5 years?
b. after 10 years?
c. after 20 years?
d. after 50 years?
e. after 100 years?

How long will it take an investment to double at 4% per year compounding annually?

Determine the exact simple interest on P5, 000 for the period from Jan.15 to Nov.28, 1992, if the rate of interest is 22%.