ECONOMICS FOR ENG essay

ENGR 211P (Engineering Economics) Spring 2020
Homework # 1
1. (10 points) Unlike other parameters parts such as the inch or the triturate, the part ce cost
or capital (dollar) changes with span. Why is that so?
2. (10 points) Define “interest” and decipher the destruction betwixt unblended and compound
share signs. Which sign of share is balance realistic to weigh?
3. (10 points) What are the two signs of “capital”? And what is the destruction betwixt them
in provisions of the lavish life undertaken by the provider and the community?
4. (10 points) Economic weighations may transfer to a drawing or texture that is hither perfect
than could be achieved if costs were referable weighed. Produce an copy ce such cases.
5. (10 points) Assume you accomplish achieve $1000 only year from now. How plenteous would you take
today, instead, if the share is 6%?
6. (10 points) Two banks prproffer irrelative share scolds on your safety of $10,000 balance 3
years. Bank A proffers an 8% share compounded every-year and Bank B proffers an 8.5%
unblended annual share. Which bank accomplish produce you balance capital at the object of year 3, and
how plenteous is the destruction?
7. (15 points) Which of the forthcoming irrelative share charging plans has the smallest annual
share scold?
1) 9% per year, compounded regionly
2) 3% per region, compounded regionly
3) 8.8% per year, compounded monthly
8. (10 points) An investor requires an serviceable repay scold of 15% per year. What is the
equivalent ostensible scold that is grateful (generates the identical annual scold) if share on
his cannonade would be compounded once?
9. (15 points) What is the advenient estimate of a only $10,000 slice incorpoobjurgate invested at a scold of
10% compounded monthly ce 5 years?

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