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Unformatted text preview: E 120: Principles of Engineering Economics Practice Final Exam May 06, 2011 Instructor: Nguyen Truong Name: (please print) SID: • Any communication with other students during the exam (including showing, viewing or sharing any writing) is strictly prohibited. Any violation will result in a score of 0 points for the exam. • 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. • You can quote and use any result stated in class or in the main body of the textbook as well as well-known general mathematical results but no references to other sources (including homework and textbook exercises) are allowed. • Present your work in an organized and neat fashion. • Good luck! Problem 1 (20) 2 (20) 3 (20) 4 (20) 5 (20) Total (100) Score 1. (20 points) (a) On Jan 1, 2011, Detective Lester Freamon plans to retire from the Baltimore Police Department (BPD). The BPD is going to make him monthly payments for 20 years (240 payments in total). It will make alternating monthly payments of $10000 and $20000 (i.e., the first monthly payment (on Feb 1, 2011) will be $10000; the second will be $20000; the third $10000; the fourth $20000 and so on). The relevant discount rate is 12% APR, compounded monthly ....
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This note was uploaded on 08/15/2011 for the course ENGR 120 taught by Professor Alder during the Summer '11 term at Berkeley.
- Summer '11