Lecture 4 Engineering Economics ENGR 3300 Department of Mechanical Engineering Inter American University of Puerto Rico Bayamon Campus Dr. Omar E. Meza.

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Lecture 4 Engineering Economics ENGR 3300 Department of Mechanical Engineering Inter American University of Puerto Rico Bayamon Campus Dr. Omar E. Meza Castillo

Lecture 4 Nominal and Effective Interest Rate What it really means?

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón Understanding Money Management

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón Nominal Versus Effective Interest Rates

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón 18% APR Compounded Monthly

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón 18% APR Compounded Monthly

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón Effective Annual Interest Rate

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón What It Really Means

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón Practice Problem 1  If your credit card charges the interest based on 12.5% APR, what is your monthly interest rate and annual effective interest rate, respectively?  Your current outstanding balance is $2,000 and you skip payments for 2 months. What would be the total balance 2 months from now?

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón Practice Problem 2  Suppose your savings account pays 9% interest compounded quarterly. If you deposit $10,000 for one year, how much would you have?

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón Effective Annual Interest Rates (9% compounded quarterly)

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón Nominal and Effective Interest rates with Different Compounding periods

Lecture 4 ENGR 3300 Engineering Economics Inter - Bayamón Homework 2 