Mechanical Engineering: Main Menu

 Sample Quiz
Problems from Chapter 1 & 2

 

Name:         
Problem 1 If you make the following series of deposits at an interest rate of 10% compounded anually, what would be the total balance at the end of 10 years?

A. $ F = 22,256
B. $ F = 24,481
C. $ F = 24,881
D. $ F = 25,981

Problem 2 In computing the equivalent present worth of the following cash flow series at period 0, which of the following expression is incorrect?

A. P = $ 100(P/A,i,4)(P/F,i,4)
B. P = $ 100(F/A,i,4)(P/F,i,7)
C. P = $ 100(P/A,i,7) - $ 100(P/A,i,3)
D. P = $100[(P/F,i,4) + (P/F,i,5) + (P/F,i,6) +                (P/F,i,7)]

Problem 3 To withdraw the following $ 1,000 payment series in the figure, determine the minimum deposite (P) you should make now if your deposits earn an interest rate of 10 % compounded anually. Note that you are making another deposite at the end of year 7 in the amount of $ 500. With the minimum deposit P, your balance at the end of year 10 should be 0.

A. P = $ 4,912
B. P = $ 4,465
C. P = $ 5,374
D. P = $ 5,912
Problem 4 Consider the cash flow series shown below. What value of C makes the inflow series equivalent to the outflow series at an interest rate of 12% compounded annually?

A. C = $ 200
B. C = $ 282.7
C. C = $ 394.65
D. C = $ 458.90
Problem 5 You just received credit card applications from two different banks. The interest terms on your unpaid balance are as follows: Bank A: 15% compounded monthly Bank B: 14.8% compounded daily Which of the following statements is incorrect?
A. The effective annual interest rate for bank A is 16.075%
B. The nominal interset rate for bank B is 14.8%
C. Bank A's term is a better deal because you will pay less interest on your unpaid balance.
D. The effective monthly interest rate for Bank A is 1.25%