'Compounding period' presentation slideshows

ENGM 661 Engineering Economics for Managers

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Exam I Review

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Engineering Economics I

Engineering Economics I. FEC II. Lesson Objectives. C alculate equivalent cash flows Using Interest Rate, Compounding Period & Interest Factors For Bank Accounts, Loans & Investments. Interest rate, i , is applied each compounding period. n = number of compounding periods.

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Compound Interest: Future Value

Compound Interest: Future Value. Definitions. Compound interest: Interest that is added to the principal before new interest earned is calculated. So interest is calculated on the principal and on interest already earned Compounding period: The intervals at which interest is calculated

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Section 10.2 Compound Interest

Section 10.2 Compound Interest. Simple interest is generally used for loans of one year or less. For loans of more than one year, the interest paid on the money borrowed usually use compound interest.

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Picking a Time Interval for a Cash Flow

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8.5 Annuities

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