A new engineering graduate who started a consulting business borrowed money for 1 year to furnish the office. The amount of the loan was $45,800, and it had an interest rate of 10% per year. However, because the new graduate had not built up a credit history, the bank made him buy loan-default insurance that costs $900. In addition, the bank charged a loan set-up fee of 1% of the loan principal. What was the effective interest rate the engineer paid for the loan?

Q: Company B plans to finance a project that will require an 8-year cleanup period. If it borrows $5…

A: Amount Borrow = 5.000,000 time period = 8 years interest rate = 20% per year

Q: ng counties in a state have agreed to pool tax resources already designated for county-maintained…

A: Answer is given below

Q: TMI Systems, a company that customizes software for construction cost estimates, repaid a loan…

A: A=P1+R×T100Where, A=AmountP=Principal R=Rate of interest and T=Time in years

Q: Basset, a furniture manufacturing company, borrowed $1 million and repaid the loan through monthly…

A: Borrowing is $1,000,000. Monthly repayment is $20,000 for two years. The lump-sum amount at end of…

Q: dentify the four engineering economy symbols and their values. Use a question mark with the symbol…

A:

Q: A start-up company sets aside 1,100,000 now into an exigency fund, how much will have the company…

A: The term 'exigency' indicates urgency. Thus exigency fund indicates a fund kept for urgency…

Q: Bull Built, a design/build engineering company that has always given year-end bonuses in the amount…

A: The value of bonus next year can be calculated as follows:

Q: A plaintiff in a successful lawsuit was awarded a judgment of $4800 per month for 5 years. The…

A: Winning amount (w) is 4,800 per month. Deposit for the lump-sum amount for the provision of winning…

Q: • Calculate the amount deposited 1 year ago to have P75 now at an interest rate of 25% per year.…

A: Given: The net amount is = ₱75 The interest rate is = 25% per year Years = 1 year ago To Find: The…

Q: Because market interest rates were near all-time lows at 1.25% per year, a hand tool company decided…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: A company that sells high-purity laboratory chemicals is considering investing in new equipment that…

A: The present value is the assumption that the present value in the future will be greater than the…

Q: What is meant by the term intangible factor?

A: Intangible factors mean factors that impacts the decision but can’t be expressed in money terms. For…

Q: A wealthy businessman wants to start a permanent fund for supporting research directed toward…

A: Any expense that incurs when a fixed asset is bought or built is known as capitalized cost. These…

Q: A coal-fired power plant has upgraded an emission control valve. The modification costs only $5,000…

A: Present value refers to the current value for a series of future sum of money or a series of cash…

Q: The analysis techniques that are used in engineering economic analysis are only as good as what?

A: Engineering economics refers to the division of economics that helps in determining the alternatives…

Q: Southwestern Moving and Storage wants to have enough money to purchase a new tractor-trailer in 3…

A: It is given that the firm is required to purchase a new tractor-trailer which costs a sum of…

Q: A regional airline company estimated four years ago that each pound of aircraft weight adds $30 per…

A:

Q: A solid waste disposal company borrowed money at 10% per year interest to purchase new haulers and…

A: Given  interest rate = 10%  r = 0.10  Amount of loan that she has to pay after completing 2 years…

Q: hree neighboring counties in a state have agreed to pool tax resources already designated for…

A:

Q: A broadband service company borrowed $2 million for new equipment and repaid the loan in amounts of…

A: Initial Amount = 2000000 Cash Flow in year 1 nd 2  = 209,000 In year 3 = 2200000

Q: What would the return be for a $ 1000 face value coupon bond with a rate of 10% that is bought for…

A: Given information: Face value = $1000 Coupon rate = 10% Coupon payment = $1000 x 10% = $100 Purchase…

Q: An alternative for producing a pesticide will have a first cost of $400,000 and annual costs of…

A: Given that, First cost= $400,000 Annual cost = $40,000 Income is expected = $120,000 Interest rate =…

Q: In order to build a new warehouse facility, the regional distributor for Valco Multi-position Valves…

A:

Q: The net cash flow associated with development and sale of a new product is shown. Determine the…

A: Year 1 2 3 4 5 6 7 8 9 Cash Flow $ -120 -100 -40 +50 +50 +80 +80 +80 +80 PV = -120/1.12 +…

Q: A company that manufactures ultrasonic wind sensors invested $1.5 million 2 years ago to acquire…

A: The investment (I) is %1,500,000. Future value (F) is $6,000,000. Interest rate (i) is 25%. Then the…

Q: A professional mechanics who specializes in truck engines paid $50,000 for equipment that will have…

A:

Q: RKI Instruments borrowed $4,800,000 from a private equity firm for expansion of its facility for…

A: The interest rate on loan is calculated as follows.

Q: 1- Calculate the equivalent annual cost of fuel for mail trucks that records indicate costs $72,000…

A: The equivalent annual cost is the cost per year incurred to the firm for owning and operating the…

Q: How much should a new graduate pay in 15 equal annual payments, starting 3 years from now, in order…

A: The measure that depicts the current stream of income being discounted at a specified rate of return…

Q: ENGINEERING ECONOMY Company C paid $2 million for a loan it took one year ago at 10% per year. How…

A: Present value is an important concept used in fields like engineering , economics and financial. It…

Q: A Texas chemical company had to file for bankruptcy because of a nationwide phaseout of methyl…

A: (a) Investment (I) is $50,000,000. Interest rate is 2% per month compound continuously. Time period…

Q: ₱5000 today is equivalent to ₱4275 exactly 1 year ago at i = ___% per year.

A: In economics, the value of money depreciates with time in presence of higher inflation rate. Again,…

Q: How much money could RTT Environmental Services borrow to finance a site reclamation project if it…

A: Given: i=0.1 , n= 5, expenses (E)=$90000, Revenue (R) = 280000

Q: TMI Systems, a company that customizes software for construction cost estimates, repaid a loan…

A: Simple Interest refers to the money paid only on the principal amount, money invested or money that…

Q: Callahan Construction borrowed $2.6 million to finance the construction of an entertainment complex…

A:

Q: The Nicor family is planning to purchase a new home 5 years from now. If they have $240,000 now, how…

A: Here we calculate the amount after 5 year so the calculation of  the following by using the given…

Q: A family that won a $100,000 prize on America’s Funniest Home Videos decided to put one-half of the…

A: Future Value(FV) is compounded value of the current amount in a future time that shows an amount…

Q: A company has been tracking the average inspection cost on a robotics line for 8 years. Cost…

A: Here, it is given thatCost average for first four years = $200 per completed unitCost average…

Q: Engr. De los Santos loans from a lending company an amount of P100,000 with a simple insterst of 20%…

A: Simple interest rate is calculated as follows: SI=P×R×T100 where, SI refers to simple interest, P…

Q: A professional mechanics who specializes in truck engines paid $46,000 for equipment that will have…

A: Simply we can understand that the break even point is known to be as that point where there exist no…

Q: A company that makes self-clinching fasteners expects to purchase new production-line equipment in 3…

A: Solution

Q: A broadband service company borrowed $2 million for new equipment and repaid the principal of the…

A: The interest amount is the difference between the amount being lent or borrowed and the total amount…

Q: A design-build engineering firm completed a pipeline project wherein the company realized a profit…

A: A rate of return (RoR) can be applied to any investment opportunity, from land to bonds, stocks, and…

Q: .. If an engineer borrows $1,000 from the company credit union at 5% per year compound interest,…

A: Here we calculate the amount due after 3 year  by using the given information , so the calculation…

Q: Consider the common moral that stealing is wrong. Hector is with a group of friends in a local…

A: Three actions that can be taken: Avoidance of self serving to greedy people and those who are aimed…

Q: A chip manufacturing company wants to have $10 million available 5 years from now in order to build…

A: Annual payment can be calculated as follows:

Q: CTX makes E-devices and planning to expand its production facility at a cost of 1.5 million one year…

A: GIVEN   CTX makes E-devices and planning to expand its production facility at a cost of 1.5 million…

Q: The time it would take $10,000 to double at a simple interest rate of 5% per year is closest to:

A: Simple interest is calculated on the principal part of the loan. It is a fixed percentage of the…

Q: First Corp Bank advertises interest paid at 2% every 6 months. What is the APR?

A: Nominal rate is also known as annual percentage rate APR when annual rate is calculated. If interest…