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Engr Econ 1

besavilla book

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Kervin Golong
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594 views27 pages

Engr Econ 1

besavilla book

Uploaded by

Kervin Golong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
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Engineering Economics KSIMPLEVNTEREST) Exact interest for t days. 1 ois Ordinary interest for t days. lagen Simple discount: I =Fde T= interest P=F(1-do) Bankers discount: d ing Engineering Economics LEbhitd G3 b se) 2titaisyy] Interest: ‘The amount of money paid for the use of money called the capital for a certain period of time rt: be paid which is proportional to the length of time the Principal is used. Principal: the amount of money used on which interest is charge. Rate of interest: ‘the amount earned by one unit of principal during a unit of time, Ordinary interest: an interest based on the exact number of ‘one bankers year which is equal to 12 ‘months, One month = 30 days One year = 360 days Exact interest: an interest based on the exact number of days, 365 days for ordinary year and 366 days for leap year. of interest in decimal ‘n= number of interest periods. F-= total amount F=P+Pn F=P(1+7) when t= I (after one year) F=P(1+r) ference between the future worth and its present worth, Rate of discount: the discount on one unit of principal per unit of time, d= rate of discount d=F-P) 1 Coetriryi) d= 75] (rate of discount) i-dizd id'-ded oe or

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