Questions from Engineering

Q: A publicly traded construction company reported that it just paid off a

A publicly traded construction company reported that it just paid off a loan that it received 1 year earlier. If the total amount of money the company paid was $1.6 million and the interest rate on th...

Q: During a recession, the price of goods and services goes down

During a recession, the price of goods and services goes down because of low demand. A company that makes Ethernet adapters is planning to expand its production facility at a cost of $1,000,000 one ye...

Q: Bull Built, a design/build engineering company that has always

Bull Built, a design/build engineering company that has always given year-end bonuses in the amount of $4,000 to each of its engineers, is having cash flow problems. The president said that although B...

Q: State University tuition and fees can be paid using one of two

State University tuition and fees can be paid using one of two plans. Early-bird: Pay total amount due one year in advance and get a 10% discount. On-time: Pay total amount due when classes start. If...

Q: Durco Automotive needs a $1 million balance in its contingency fund

Durco Automotive needs a $1 million balance in its contingency fund 3 years from now. The CFO (chief financial officer) wants to know how much to deposit now into Durco’s high-yield investment account...

Q: TMI Systems, a company that customizes software for construction cost estimates

TMI Systems, a company that customizes software for construction cost estimates, repaid a loan obtained 3 years ago at 7% per year simple interest. If the amount that TMI repaid was $120,000, calculat...

Q: The Nicor family is planning to purchase a new home 3 years

The Nicor family is planning to purchase a new home 3 years from now. If they have $240,000 now, how much will be available 3 years from now? The fund grows at a compound rate of 12% per year. Answe...

Q: (a) At a simple interest rate of 12% per

(a) At a simple interest rate of 12% per year, determine how long it will take $5000 to increase to twice as much. (b) Compare the time it will take to double if the rate is 20% per year simple intere...

Q: Valley Rendering, Inc. is considering purchasing a new flotation system

Valley Rendering, Inc. is considering purchasing a new flotation system for grease recovery. The company can finance a $150,000 system at 5% per year compound interest or 5.5% per year simple interest...

Q: Iselt Welding has extra funds to invest for future capital expansion.

Iselt Welding has extra funds to invest for future capital expansion. If the selected investment pays simple interest, what annual interest rate would be required for the amount to grow from $60,000 t...