CE 167 Final
Spring 2000
Prof. C.W. Ibbs
Directions
:
•
Put your name on your bluebook.
•
This exam is to be completed in a bluebook – answers not recorded
in a bluebook will not be graded.
•
Place the exam on the inside of you bluebook when finished.
•
Read the question thoroughly before answering.
Point totals for
each question are listed.
•
Write legibly
and express yourself logically.
Write short, concise
answers.
Question #1
(a) [4 points]
You have the opportunity to take part in an investment that requires an
expenditure of $3000 now in order to receive $5000 five years from now.
You also have the opportunity to put your money in an account that yields
a 7%peryear interest rate.
What investment should you make and why?
(b) [4 points]
How long will it take for $1000 to double if the interest rate is 5% per
year?
(c) [4 points]
A credit card advertises its interest rate of 1% per month.
Calculate the
effective annual interest rate.
(d) [4 points]
For an interest rate of 18% per year compounded continuously, calculate
the effective monthly and annual interest rates.
(e) [4 points]
You want to buy a car for $5000 down and deferred annual payments of
$500 a year for 6 years starting 3 years from now.
What is the present
worth of the investment if the interest rate is 8% per year?
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 Spring '09
 CHOW
 consultant, General contractor, xx points

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