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Engineering Economics – Enter course code here Engineering Geology Problem 1: The amount of initial investment at a rate of interest of 10% and after 3 years to get $4000. This can be used to tell investor’s their return value.
Future value is give, interest rate and number of years.P = F/ (1+i)n i.e. P = 4000/(1.03)5 = 3005. Interest rate is in percentage
Using Time value of money equation for compound interestThis equation is used for the calculation if initial deposit for a return of 4000 after 3 years at 10% interest rate. Rate of Interest and number of years are the variables. We derive the formula from F = P(1+i)n. Placing Continue reading...