E120: Principles of Engineering Economics
Midterm Exam I
October 4, 2006
Ismail Ceylan
Name: ___________________________________________
(please print)
SID:
______________________
•
Clearly state all the mathematical expressions that are needed to solve the problems.
No credit
will be given to
numerical answers without the proper setup.
•
Answer each of the following questions in the space provided. If you need more space to show
major computations you performed to obtain your answer for a particular problem, use the back
of the preceding page.
•
Present your work in an organized and neat fashion.
Good Luck!
Problem
1
(40)
2
(30)
3
(35)
Total
(100 + 5 bonus)
Score
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View Full DocumentProblem 1 (40 points)
You won the big prize in the California lottery and you have to choose one of the following two
payment plans:
•
Payment Plan 1
: If you choose this payment plan, you will receive
semiannual
payments for a fixed period of time. The first payment of $150,000 will be paid on
January 01, 2007 and it will grow by 2% every 6 months. You will receive the last
payment on January 01, 2016.
•
Payment Plan
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 Spring '08
 ALDER
 payment plan

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