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Exam_3

# Exam_3 - IE 343 Fall 2009 Name Student ID IE 343 Midterm 3...

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IE 343 Fall 2009 Name: _______________________ Student ID: ___________________ 1 IE 343 Midterm 3. Dec 2 nd , 2009 Closed Book, Closed Notes Show all of your work . Your work and answers must be shown on the pages provided. Write your name and student ID in the spaces provided above. For problems 3 and 4, note that no interest tables are required; you are to carry your answer to the point where the equation for the problem is specified –e.g., “1,000(A/P, 10%, 5) + 1,500 + 200(A/F, 10%, 5)” and stop here. Your grade on this problem will be based on the correctness of the equation and the clarity of your work leading up to the equation. For problems 1, 2 and 5 , interest tables may be used and are provided for you to perform your calculations.

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IE 343 Fall 2009 Name: _______________________ Student ID: ___________________ 2 1. True or false (2 points each). a) Inflation decreases the purchasing power of money. T F b) It is possible to have a negative inflation rate. T F c) A negative devaluation rate implies buying foreign goods becomes progressively cheaper. T F d) The investment value of the defender is the MV foregone and all future expenses incurred by keeping the defender. T F e) The challenger should replace the defender only if the min. EUAC of the challenger is less than the min. EUAC of the defender. T F
IE 343 Fall 2009

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Exam_3 - IE 343 Fall 2009 Name Student ID IE 343 Midterm 3...

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