Interested to Buy Any Domain ? << Click Here >> for more details...
ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.16 : An engineer would like to invest his money in a home, business and bond. The implicit interest payment frequency is monthly for home loans, quarterly for business loans; semi annually for bonds. A generalized mathematical formula to calculate I = interest rate equivalence is I = (1 + i / N) ^ N - 1 where i = annual interest rate, N = number of payment per year. (a) Calculate the value of N for : (i) home loans; (ii) business loans; (iii) bonds. (b) For i = 0.08, find the value of I for : (i) home loans; (ii) business loans; (iii) bonds.
- 1 Answers
- 2072 Views
- I also Faced
- E-Mail Answers
Answer Posted / kangchuentat
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.16 : (a) (i) There are 12 months / year, then N = 12. (ii) There are 4 quarters / year, then N = 4. (iii) There are 2 semiannuals / year, then N = 2. (b) Use I = (1 + i / N) ^ N - 1 as a reference. (i) I = (1 + 0.08 / 12) ^ 12 - 1 = 0.083. (ii) I = (1 + 0.08 / 4) ^ 4 - 1 = 0.08243216. (iii) I = (1 + 0.08 / 2) ^ 2 - 1 = 0.0816. 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 View All Answers
How i can calculate heat transfer in reactor at unsteady state and what data should i have? I want equation and process to calculate it? As there is steam or brine in jacket
What are the methods involved to test helium leak testing in a vacuum system?
Explain what is the method involved in analyzing powders for composition?
Define pcbs?
What is the ignition temp. of Aluminum,Coper&Iron.
which materials can l use if l want to use length wave 680 to 900 in hplc
What is the best way to control an oversized, horizontally oriented shell and tube steam heater?
what is defferance between tubular & automotive plate battery
What is some good advice for specifying allowable pressure drops in shell and tube exchangers for heavy hydrocarbons?
What is minimum flow required of NG having BTU value of 920 btu/scf for flame stability of LBTU gas of BTU value 220 BTU/SCF against the flow 80KPPH.
Explain the different types of equipments for the conveyance of solids?
What is a good source of information for the design of pressure vessels?
What is the import procurement cycle? What are the customization steps in sap?
What are the some common causes of control valve noise?
Are there any general rules that should be considered when designing a slurry piping system?
