Homework #5 IOE 201 - Economic Decision Making Homework #5: Answers are due Wednesday, October 21, 2009
1. A borrower takes out a 15-year loan at interest rate i per year, compounded monthly. The payments on the loan are monthly (due at the end of each mo

HOMEWORK SET 5 5.55 A cylinder having a piston restrained by a linear spring (of spring constant 15 kN/m) contains 0.5 kg of saturated vapor water at 120C, as shown in Fig. P5.55. Heat is transferred to the water, causing the piston to rise. If the piston

ME 235 HW set 2 3.16 Carbon dioxide at 280 K can be in different phases. Indicate the pressure range you have for each of the three phases (vapor, liquid and solid). Look at the P-T phase diagram in Fig. 3.6 at 280 K:
ln P
P < 4000 kPa 4000 kPa < P < 400

IOE 201 - Economic Decision Making Homework #5 - Solutions
1. Payment against principal in kth months payment is Ek =
A (1 + i) N k +1
1 Payment in interest in kth months payment is I k = A 1 N k +1 (1 + i)
Number of monthly payments in 15-year loan is

Homework #4 IOE 201 - Economic Decision Making Wednesday, October 7, 2009
Homework #4
No written homework assignment to be graded for this week. Instead, the homework for this week is the following: Read over the Group Project (posted on CTools) and start

Homework #3 IOE 201 - Economic Decision Making Homework #3: Answers are due Wednesday, September 30, 2009 1. Textbook, p. 118, Problem 3.46 You are buying a home for $260,000. If you make a down payment of $50,000 and take out a mortgage on the rest at 8.

IOE 201 - Economic Decision Making Homework #2 - Solutions 1. Effective interest rate = 0.1256 = (1+i)M 1 where i = interest rate per period and M = number of periods per year. Interest is compounded quarterly, so period is a quarter and M = 4. (a) (1+i)4

Homework #2 IOE 201 - Economic Decision Making Homework #2: Answers are due Wednesday, September 23, 2009 2 pages, 10 questions: 1. If interest is compounded quarterly, and the effective annual interest rate is 12.56%, (a) What is the interest rate per qu

IOE 201 - Economic Decision Making Homework #1 - Solutions (a) Amount at the end of N years is P(1 + i ) N Therefore interest earned in year N+1 is iP(1 + i ) N (b) Amount at the end of N+1 years = (Amount at the end of N years) + (Interest earned in year

Homework #1 IOE 201 - Economic Decision Making Homework #1: Answers are due Wednesday, September 16, 2009 1. A given principal P earns compound interest annually, with interest rate i per year. We showed in class that the future worth F at the end of N ye

IOE 201 - Economic Decision Making Homework #2 - Hints for Problems 7 and 8
In Problems 7 and 8, the payment period is different than the interest period. Let r = nominal annual interest rate M = number of interest periods per year i = interest per intere

IOE 201 Lecture Notes 10
Cumulative Plots of Income and Spending
Spending
Cumulative Dollars
Cum. income at time t Savings Debt
Income
y ( t) =
Cum. spending 1 at time t
= y (t ) =
if y(t) > 0 if y(t) < 0
t
Tim e
11
Cumulative Plots of Income and Spending

IOE 201 Lecture Notes 9
Salvage Value
For a project that requires investing in equipment, there is often still some value to the equipment at the end of the projects life. If the equipment has a usable life beyond the life of the project, a value is assi

IOE 310 Winter 2009 Midterm Exam
February 18, 2009
Name: Instructions This is a closed book, closed notes exam. You may use one double-sided 8 11 inch note sheet and no calculators during the exam. Note that not all problems carry the same weight. Do the

IOE 201 Lecture Notes 8
Project Evaluation Methods
In the analyses so far, the focus has been on earning interest from investments, rather than generating revenue or new wealth. In commercial projects, investments are made and expenses incurred in order t

IOE 201 Lecture Notes 7
Equity and Interest Payments on a Loan
Previous Example: Home Mortgage Price of home: $220,000 Down payment: $20,000 Loan (home mortgage): $220,000 $20,000 = $200,000 Duration of loan: 15 years = 180 months Interest rate: 7.2% per

ME 235 Thermodynamics I Exam #1 February 8, 2008 2:40pm 3:30pm
Instructor: Kevin Pipe (Sec. 002)
Exam Rules: Open Book, Calculator, No Laptops, No Notes Write your final answers in the blanks provided below. When you are done, staple your work pages to th

Actual Dollars versus Constant Dollars
Actual (current) dollars (An) Represent cash for year n actually received or paid at the time of a cash flow transaction. Constant (real) dollars (A n) Represent cash for year n in terms of constant purchasing power

IOE 201 Lecture Notes 5
Compound Interest: Different Interest Rates in Each Interest Period
P i N F = = = = Present worth ($) Interest rate per period Number of periods Future ($) at end of N periods
If interest rate i is same in each interest period, F =

HOMEWORK SET 4 4.41 Ammonia (0.5 kg) is in a piston cylinder at 200 kPa, -10oC is heated in a process where the pressure varies linear with the volume to a state of 120oC, 300 kPa. Find the work the ammonia gives out in the process. Solution: Take CV as t

IOE 201 Lecture Notes 4
Geometric Gradient Series of Payments
P
i = Interest rate per period g = Percentage change per period N = Number of interest periods (e.g., N = 8)
Interest Periods 4 5 6
1 0 A1
A
2
g) 1+
2 ) g
3
7
8
( 1
A
(1 1
+
A
(1 1
+
)3 g
A
(1+

ME 235 HW set 3 3.69 Is it reasonable to assume that at the given states the substance behaves as an ideal gas? Solution: a) Oxygen, O2 c) Water, H2O d) R-134a e) R-134a
at
30C, 3 MPa 30C, 3 MPa 30C, 3 MPa
Ideal Gas ( T Tc = 155 K from A.2) Ideal Gas ( T

IOE 201 Lecture Notes 2
Compound Interest: Formula for Effective Interest Rate
M = Number of interest periods per year r = Nominal annual interest rate (or APR) reff = Effective annual interest rate (or Effective APR or APY)
r reff = 1 + 1 M
Example: M =