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Published byRosalind Brooks Modified over 9 years ago
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Engineering Economy IEN255 Chapter 2 Leftovers Geometric Gradient (not linear but a percent!) example 2.24
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Engineering Economy IEN255 Chapter 2 Big Hint!!!! table 2.3
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Engineering Economy Composite cash flows Fig 2.36
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Engineering Economy Composite cash flows Fig 2.37
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Engineering Economy Unknown Interest Rate Example 2.27
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Engineering Economy IEN255 Nominal Interest Nominal 18% compounded quarterly nominal = APR fig 3.1
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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)
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Engineering Economy Effective vs Nominal Interest table 3.2
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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)
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Engineering Economy Effective Rate per Payment Period Figure 3.3
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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)
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Engineering Economy Periods the same or different Payment period = compounding period Payment period compounding period
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Engineering Economy Useful hint!!!! figure 3.12
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Engineering Economy Continuous Payments table 3.2
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Engineering Economy Changing Interest Rates Example 3.13
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