Engineering Economics Analysis (MN-220) Test 2 - (A) (Fall 2017) 1. You have borrowed $30,000 at an annual interest rate (r) of 6% compounded monthly Equal payment will be made every six months over a five-year period. (The first payment will be made at the end of the first sith month.) (25 points) (a) What is the semi-yearly interest rate (effective interest rate per semi-year)? (b) What is the annual effective interest rate (efective interest rate per year)? 2. A man is planning to retire in 20 years He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 18 years. How much must he deposit if the interest rate is 6% compounded monthly? (25 points)