11. A person buys a piece of property for $5,000 down and defer payment of S300 a year for 6 years starting 3 years from now. what is the present worth of the investment if the interest is 8%? (P/A 8%, 6 4.6229), (P/F, 8%, 2-0.8573). a. 698.60 b. 6981.60 c. 6188.96 d. 7840.00 What effective interest rate per year is equivalent to a nominal rate of 10% per year compounded semiannually and 12. continuously? a. b. c. d. 10.25% and 10.52% 10.30% and 10.60% 10.38% and 10.52% 10.30% and 10.55% II TRUE OR FALSE A cash-flow diagram is simply a graphical representation of receipts and disbursements. 13. 14. Linear interpolation is acceptable and is considered sufficient when the values of "i" are close to each other. The difference between nominal and effective interest rates is that nominal interest rate takes into consideration time value of money for than one year. 15. There is no formula expressing the relationship between effective rates and continues interest rate. 16. Engineering economy is a decision assistance tool by which one method will be chose as the most economical one. 17. 18. When you are solving a problem using Present worth Method, it is important to know the exact location of PW, and the exact life of each alternative