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EMT320 W3 Getting Started

This document provides an overview of Week 3 of the EMT320 course which focuses on nominal and effective interest rates. The weekly objectives are to understand the difference between nominal and effective interest rates and learn how to perform equivalence calculations for various payment periods and compounding periods using nominal and effective rates. Students are assigned to read the relevant textbook chapter, review key terms, and watch video lectures on the topics as well as participate in a discussion and complete an assignment.

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Grantham University
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300 views3 pages

EMT320 W3 Getting Started

This document provides an overview of Week 3 of the EMT320 course which focuses on nominal and effective interest rates. The weekly objectives are to understand the difference between nominal and effective interest rates and learn how to perform equivalence calculations for various payment periods and compounding periods using nominal and effective rates. Students are assigned to read the relevant textbook chapter, review key terms, and watch video lectures on the topics as well as participate in a discussion and complete an assignment.

Uploaded by

Grantham University
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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EMT320: Foundations of Engineering Economy

WEEKLY OVERVIEW: Week 3


Week 3: Nominal and Effective Interest Rates

Course Objectives:

Compare Nominal and Effective Interest Rates

Weekly Objectives:

Understand the difference between nominal and effective interest rates


Determine the correct I and n values for different payment and compounding periods
Perform equivalence calculations for various payment periods and compounding periods when
only single amounts occur.
The student should be able to make equivalence calculations when uniform or gradient series
occur for payment periods equal to or longer than the compounding period.
Make equivalence calculations for payment periods shorter than the compounding period.
Make equivalency calculations Shorter than the compounding period
Use a spreadsheet to perform equivalency computations involving nominal and effective
interest rates.
Assigned Reading:
1. Chapter 3 in your textbook
2. Review the W3 key terms: Nominal and Effective Interest Rates
3. View W3 Lecture
4. View W3 Video Lectures
Activities
1. Participate in the W3 discussion Why is it necessary to have a nominal and effective interest
rate?
2. Complete the W3 Assignment

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