Engineering Economy
Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
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Chapter 1, Problem 15P
To determine

Calculation of interest rate.

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Which of the following 1-year investments has the highest rate of return: $12,500 that yields $1125 in interest, $56,000 that yields $6160 in interest, or $95,000 that yields $7600 in interest?
Compute the interest rate if future value (FV) = $11461, present value (FV) = $3959,  and number of years (t) = 8.
You have borrowed $10,000 from a bank with the understanding that you will pay it off with a lump sum of $12,000 after 2 years. Find theannual rate of interest on this loan.
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