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Engineering Econo my a. Mr. Manny invests $100,000 today to be repaid in five years in one lump sum at 12% compounded annually. If the
Engineering Economy
a. Mr. Manny invests $100,000 today to be repaid in five years in one lump sum at 12% compounded annually. If the rate of inflation is 3% compounded annually, approximately how much profit in present day pesos, is realized over the five years? b. What is the effective annual interest rate if Mr. Waldo pays interest on a loan semi-annually at a nominal annual interest rate of 16%. c. Determine the interest rate compounded monthly that is equivalent to 10% interest rate? d. What is the future worth of $100 at the end of four years if the annual rate of return is 8%Step by Step Solution
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