Engineering Economy IEN255 Chapter 2 Leftovers Geometric Gradient (not linear but a percent!) example 2.24
Engineering Economy IEN255 Chapter 2 Big Hint!!!! table 2.3
Engineering Economy Composite cash flows Fig 2.36
Engineering Economy Composite cash flows Fig 2.37
Engineering Economy Unknown Interest Rate Example 2.27
Engineering Economy IEN255 Nominal Interest Nominal 18% compounded quarterly nominal = APR fig 3.1
Engineering Economy Effective Interest Truly represents interest earned if nominal = r M compounding periods per year i a = (1 + r/M) M - 1 (3.1)
Engineering Economy Effective vs Nominal Interest table 3.2
Engineering Economy Effective Interest Rates per Payment Period Generalized form if nominal = r M compounding periods per year C interest periods per payment period K payment periods per year i a = (1 + r/M) C - 1 = (1 + r/CK) C - 1 (3.2)
Engineering Economy Effective Rate per Payment Period Figure 3.3
Engineering Economy Continuous Compounding Generalized form I = e r/K - 1 (3.3) annual interest rate (K=1) i a = e r/K - 1 (3.4)
Engineering Economy Periods the same or different Payment period = compounding period Payment period compounding period
Engineering Economy Useful hint!!!! figure 3.12
Engineering Economy Continuous Payments table 3.2
Engineering Economy Changing Interest Rates Example 3.13