Calculate the interest factor.
Explanation of Solution
Option (1):
The interest rate (i) is 10% and time period is 7 years.
The future to present compound interest factor (If) can be calculated as follows:
The future to present compound interest factor is 1.9487.
Option (2):
The interest rate (i) is 12% and time period is 10 years.
The equivalent annual to present interest factor (EA) can be calculated as follows:
The equivalent annual to present interest factor is 0.17699.
Option (3):
The interest rate (i) is 15% and time period is 20 years.
The present growth interest factor (Pg) can be calculated as follows:
The present growth interest factor is 33.5822.
Option (4):
The interest rate (i) is 2% and time period is 50 years.
The future to annual interest factor (Fa) can be calculated as follows:
The future to annual interest factor is 84.58.
Option (5):
The interest rate (i) is 35% and time period is 15 years.
The annual growth interest factor (Ag) can be calculated as follows:
The annual growth interest factor is 2.6889.
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Chapter 2 Solutions
Engineering Economy
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