ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.17 : In the engineering calculations of interest rate caused by inflation, General Inflation Effect and Fisher Effect may be considered. Let I = inflation rate, R = nominal interest rate, r = real interest rate. According to Fisher Effect, (1 + R) = (1 + r) (1 + I). According to General Inflation Effect, r = R - I. (a) If I = 0.1 for all effects, both the values of R and r in the Fisher Effect are the same as R and r in the General Inflation Effect, find the values of R and r. (b) If R has the same value caused by both General Inflation Effect and Fisher Effect, find the possible values of R, r and I in term of R etc.



ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.17 : In the engineering calculations of interest r..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.17 : (a) For Fisher Effect, 1 + R = 1.1 (1 + r) = 1.1 + 1.1 r, 0.1 = R - 1.1 r (Equation 1). For General Inflation Effect, r = R - 0.1, 0.1 = R - r (Equation 2). Equation 2 - Equation 1 : r = 0, then R = 0.1. (b) (1 + R) = (1 + r) (1 + I) = 1 + I + r + rI, then R = (I + r) + rI (Equation 3). Let R = I + r (Equation 4). Equation 3 - Equation 4 : 0 = Ir, where (I = 0) or (r = 0) or (I = 0 and r = 0). If I = 0, r = R. If r = 0, I = R. If I = 0 and r = 0, R = 0 = 0 R = 1 R. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Chemical Engineering Interview Questions

Question 86 - (a) Male with genotype GGmm and phenotype gray wingless mates with female with genotype ggMM and phenotype black winged in fruit flies. G is dominant to g in color. M is dominant to m in wing shape. If the actual distribution of the second generation of the fruit flies was as follow : 890 gray wingless, 900 black winged, 115 gray winged, 95 black wingless, calculate the recombination frequency betwen the two genes and distance in recombination units. Let 1 map unit = 1 % recombination. (b) A DNA molecule has 180 base pairs and 20 % adenine. How many cytosine nucleotides are present in this molecule of DNA?

1 Answers  


What is the use of gear pumps in motor?

0 Answers  


Explain the common failure mechanism for above ground atmospheric storage tanks?

0 Answers  


Question 108 - (a) The correct statement about both the average value of position (<x>) and momentum (<p>) of a 1-dimensional harmonic oscillator wavefunction is <x> = <p> = 1 - x. Find the value of x. (b) The probabilities of finding a particle around points A, B and C in the wavefunction y = f(x) are P(A), P(B) and P(C) respectively. Coordinates are A (3,5), B (4,-10) and C (6,7). Arrange P(A), P(B) and P(C) in term of a < b < c, when | y-coordinate | signifies the probability.

1 Answers  


BIOCHEMICAL ENGINEERING INSTRUMENTATION - EXAMPLE 29.6 : In infrared spectrum, one of the factors affecting peak location is the mass of the atoms. The stretching frequency of a bond connected to a lighter atom will be greater than the same bond connected to a heavier atom. (a) For halogens like florine (F), chlorine (Cl), bromine (Br), iodine (I) and astatine (At), what is their IUPAC group number? Hint : The proton numbers for F, Cl, Br, I and At are 9, 17, 35, 53 and 85 respectively. (b) For the compounds of H-F, H-Cl, H-Br, H-I and H-At, which one has the lowest stretching frequency and which one has the highest stretching frequency? State the reasons.

1 Answers  






what are the precautions u are taking while starting HT motors?

2 Answers   HPCL, MRPL Mangalore Refinery and Petrochemicals Limited,


What is cathodic protection, how it works in Turbine condensers ?

0 Answers   HPCL, HQL,


Explain what information is needed to specify a mixer?

0 Answers  


marketing procedure of iocl

0 Answers   IOCL,


What are the customization steps in sap?

0 Answers  


What is maximum recommended velocity for steam in a plant pipe network?

0 Answers  


who is the first atomic scientist in india?

5 Answers   IGCAR,


Categories
  • Civil Engineering Interview Questions Civil Engineering (5085)
  • Mechanical Engineering Interview Questions Mechanical Engineering (4452)
  • Electrical Engineering Interview Questions Electrical Engineering (16637)
  • Electronics Communications Interview Questions Electronics Communications (3918)
  • Chemical Engineering Interview Questions Chemical Engineering (1095)
  • Aeronautical Engineering Interview Questions Aeronautical Engineering (239)
  • Bio Engineering Interview Questions Bio Engineering (96)
  • Metallurgy Interview Questions Metallurgy (361)
  • Industrial Engineering Interview Questions Industrial Engineering (259)
  • Instrumentation Interview Questions Instrumentation (3014)
  • Automobile Engineering Interview Questions Automobile Engineering (332)
  • Mechatronics Engineering Interview Questions Mechatronics Engineering (97)
  • Marine Engineering Interview Questions Marine Engineering (124)
  • Power Plant Engineering Interview Questions Power Plant Engineering (172)
  • Textile Engineering Interview Questions Textile Engineering (575)
  • Production Engineering Interview Questions Production Engineering (25)
  • Satellite Systems Engineering Interview Questions Satellite Systems Engineering (106)
  • Engineering AllOther Interview Questions Engineering AllOther (1379)