ES108

Engineering Economics
Assignment #2

1. How long will it take for an investment to fivefold its amount if money is worth 14%
compounded semi-annually?
2. If the interest rate on an account is 11.5% compounded yearly, approximately how many
years will it take to triple the amount?
3. If the nominal interest rate is 3%, how much is P5, 000.00 worth in 10 years in a
continuously compounded account?
4. Accumulate P5, 000.00 for 10 years at 8% compounded semi-annually.
5. A man lends P6, 000.00 at 6% simple interest for 4 years. At the end of this time he
invests the entire amount (principal plus interest) at 5% compounded annually for 12
years. How much will he have at the end of the 16 years period?