50.1K

Verified Solution

Link Copied!

Part 1: True or False, 2.0 Marks ( 5 Questions, 0.5 point per each) 1. [ ] (A/F,i,n) is known as the equal-payment-series sinking fund factor for discrete-compounding discrete payments. 2. [ ] The utility of an object, unlike its value, inheres not in the object itself but in the regard a person has for it.) 3. [ ] Under simple interest, the interest owed upon repayment of loan is exponentially proportional to the length of time the principal sum has been borrowed. 4. [ ] The nominal rate of interest is expressed on an annual basis and is determined by multiplying the actual or effective interest rate per interest period by the number of compounding periods per year. Part 2: Fill in the Blank Space, 2 Marks (4 Questions, 0.5 point per each) 5. , is the profession in which acknowledge of the mathematical and natural sciences gained by, study, experience, and practice is applied with judgment to develop ways to utilize economically the materials and forces of nature for the benefit of mankind. 6. Phases in engineering process include the , the identification of means, the evaluation of engineering proposals, and assistance in decision making. 7. The relationship between interest and , leads to the concept of the time value of money. 8. or the rate of capital growth. Is the rate of gain received from an investment. Part 3: Problems, 6 Marks (3 Questions, 2 point per each) 9. A father wants to deposit an unknown lump-sum amount into an investment opportunity 2 years from now that is large enough to withdraw $4000 per year for state university tuition for 5 years starting 3 years from now. If the rate of return is estimated to be 15.5% per year, construct the cash flow diagram. Compute the amount of the lump-sum?. Solution: Part 1: True or False, 2.0 Marks ( 5 Questions, 0.5 point per each) 1. [ ] (A/F,i,n) is known as the equal-payment-series sinking fund factor for discrete-compounding discrete payments. 2. [ ] The utility of an object, unlike its value, inheres not in the object itself but in the regard a person has for it.) 3. [ ] Under simple interest, the interest owed upon repayment of loan is exponentially proportional to the length of time the principal sum has been borrowed. 4. [ ] The nominal rate of interest is expressed on an annual basis and is determined by multiplying the actual or effective interest rate per interest period by the number of compounding periods per year. Part 2: Fill in the Blank Space, 2 Marks (4 Questions, 0.5 point per each) 5. , is the profession in which acknowledge of the mathematical and natural sciences gained by, study, experience, and practice is applied with judgment to develop ways to utilize economically the materials and forces of nature for the benefit of mankind. 6. Phases in engineering process include the , the identification of means, the evaluation of engineering proposals, and assistance in decision making. 7. The relationship between interest and , leads to the concept of the time value of money. 8. or the rate of capital growth. Is the rate of gain received from an investment. Part 3: Problems, 6 Marks (3 Questions, 2 point per each) 9. A father wants to deposit an unknown lump-sum amount into an investment opportunity 2 years from now that is large enough to withdraw $4000 per year for state university tuition for 5 years starting 3 years from now. If the rate of return is estimated to be 15.5% per year, construct the cash flow diagram. Compute the amount of the lump-sum?. Solution

Answer & Explanation Solved by verified expert

See Answer