cee167-sp00-final-Ibbs-soln

cee167-sp00-final-Ibbs-soln - CE 167 Final Spring 2000...

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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%-per-year 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? (f) [4 points]
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This note was uploaded on 12/01/2011 for the course CE 13972 taught by Professor Chow during the Spring '09 term at University of California, Berkeley.

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cee167-sp00-final-Ibbs-soln - CE 167 Final Spring 2000...

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