Metalfab Pump and Filter expects the cost of steel bodies for 6-inch valves
to increase by $2.5 every 3 months. If the cost for the first quarter is
expected to be $80, what is the present worth of the costs for a 3-year time
period at an MARR of 11% per year compounded quarterly?
A wise mechanical engineering graduate began saving money for early
retirement by depositing $1600 per month into a fixed rate account that
pays 6% per year compounded semiannually. If she started saving 1 month
after she started working, what is the expected value of the account at the
end of 20 years?
You were just informed of the interest rate on your student loan. It is stated
as 0.7% per month.
NOTE: This is a multi-part question. Once an answer is submitted, you will
be unable to return to this part.
Determine the nominal interest rate r per month.
The Second National Bank of Fullerton advertises an APR of 17%, but it
indicates in the “small print” that compounding occurs on a monthly basis
for personal loans with no collateral required.
NOTE: This is a multi-part question. Once an answer is submitted, you will
be unable to return to this part.
Determine the APY you would pay using an equation.