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Homework Assignment #2 Solutions
IE 343 – Homework Assignment #2 Solutions – Page 1
PURDUE UNIVERSITY
Homework Assignment #2
IE 343: Engineering Economics
Assigned: 3 Sept 2010
Fall 2010
Due: 10 Sept 2010
Instructor: A. Capponi
Instructions for completing the homework assignment:
Write your name, course number (IE
343), Section 1 or 2, and due date on the top of each page submitted for the assignment.
Homework must be legible.
Box, underline, or highlight your final answer.
Homework must be
submitted at the beginning of class on the due date.
Late homework will not be accepted.
All
pages of the homework assignment must be stapled together.
Failure to do any of the items
listed above will result in a deduction of points from your final homework grade.
Problem 1
(5 points)
Textbook Problem 41
Total Interest = P*N*I = $10,000(4.25 years)(0.10/year) = $4,250
Problem 2
(10 points)
Textbook Problem 410
Consumer Loan
F = $5,000(F/P,12%,5) = $5,000(1.12)
5
= $5,000(1.7623) = $8,811.50
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