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S. An amount $4,000 is invested today and another $10,000 invested four years from now, If both of the earn a simple interest of 10%,

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S. An amount $4,000 is invested today and another $10,000 invested four years from now, If both of the earn a simple interest of 10%, the interest accrued at the end of 5 years is Si,400 True/False 16. IfSonja invested $10,000 in a good mutual fund that pays an average return or i0%the investment will be worth S1610 five years from now True or False 17. It is customary in engineering economic analysis to assume that the stated interest rate is for a one-year period. True or False 18. When there are different repayment plans available to repay a loan, the plans are all equivalent as long as the interest rates are different as each payment plan results in a different total repayment True or False Chapter 4- Equivalence for Repeated Cash Flows 19. An "annuity" is defined as: A) Earned interest due at the end of each interest period. Amount of interest earned by a unit of principal in a unit of time C) B) A series of equal cash flows occurring at equal periods of time. All of the above. D) 20. A set of cash flows are given in table below, using the principles of equivalence, determine the value "Y" for an interest rate of 8% compounded annually. Page 2

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