Course: Engineering Economy March 2021 st Date: 1 Q1: Ahmad proposed two investment plans. Which of the following scenarios has a better rate of return considering that simple interest is used. [3 marks] Scenario 1: $200 invested in 1 year with $ 6.25 paid in interest Scenario 2: $500 invested for 1 year with $18 paid in interest Q2: Sami deposited $4,000 at time 0 in an account that pays an interest of 10%. How much should be withdrawn at the end of period 2 to have $4,000 at the end of period 4 available in the account? Draw the cash flow diagram? [3 marks] Q3: [4 marks] 1. At a simple interest rate of 12% per year, determine how long it will take $5000 to increase to twice as much. 2. Compare the time it will take to double if the rate is 20% per year simple interest