ENGR-301-2192-H Assignment 6 Interest Rate & Growth Calculations Comprehensive Questions (Frequently Tested) with Verified Answers Graded A+_organized

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Home ▶ My courses ▶ ENGR-301-2192-H ▶ 27 October - 2 November ▶ Assignment 6

Started on Monday, 4 November 2019, 11:22 AM
State Finished
Completed on Monday, 4 November 2019, 12:57 PM
Time taken 1 hour 34 mins
Marks 11.00/14.00
Grade 7.86 out of 10.00 (79%)


Question 1 If the growth rate of a series is equal to 5% and annual interest rate is equal to 10%, what
Correct is the growth adjusted interest rate?

Mark 1.00 out of
Select one:
1.00
a. -4.76%

b. -5.00%
c. +4.76%

d. +5.00%

e. +4.16%



Your answer is correct.
The correct answer is: +4.76%



Question 2 When is the growth-adjusted interest rate for a geometric series equal to zero?
Correct
Select one:
Mark 1.00 out of
1.00 a. Growth is positive and equal to the interest rate.

b. Growth is positive.

c. Growth is negative.

d. Growth is positive, but less than the interest rate.

e. Growth is positive and greater than the interest rate.



Your answer is correct.
The correct answer is: Growth is positive and equal to the interest rate.




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Question 3 A municipality has just completed the construction of a bridge. It was calculated that
Correct operating and maintenance (O&M) costs of this bridge will be $20 000 in the first year with
a 5% increase each year thereafter for the next 4 years. The interest rate used in
Mark 1.00 out of
calculations was 7.5% per year. What interest rate should be used to calculate the present
1.00
worth of O&M costs over 5 years if we use the geometric series to present worth
conversion factor?

Select one:
a. 5.0%

b. 2.4%

c. 8.2%

d. 7.5%

e. 1.9%



Your answer is correct.
The correct answer is: 2.4%



Question 4 Calculating the growth-adjusted interest rate requires:
Correct
Select one:
Mark 1.00 out of
1.00 a. the base amount and the interest rate.

b. the rate of growth and the interest rate.
c. the base amount and the rate of growth.

d. the number of periods and the interest rate.
e. the number of periods and the rate of growth.



Your answer is correct.
The correct answer is: the rate of growth and the interest rate.




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