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Engineering Economy Simple Interest

energy conversion
The capital originally invested in a transaction is called the principal P. At
COURSE OUTLINE
any time after the investment of the principal , the sum of the principal and
LECTURE 1
the interest due is called the amount F.
LECTURE 2
LECTURE 3
Interest- the amount paid for the use of money called the capital for a
Efficiency of Motor
certain period of time
BOARD EXAM

Simple interest- the interest to be paid which is proportional to the

industrial electronics
length of time the principal is used.
Gate turn off switch-GTO
weldings
Principal- the amount of money used on which interest is charge.

power electronics
Rate of interest – the amount earned by one unit of principal during a
Course Outline
unit of time.
LECTURE 2
inductor power and energy
Ordinary Interest- an interest based on the exact no. of 1 bankers tears
POWER
is equal to 12 months
Series Regulator
Shunt Voltage Regulator
1 month=30 days

basic electronics-ee412
1 year=350 days
syllabi
COURSE OUTLINE
Exact Interest based on the exact no. of days, 365 days for ordinary year
LEC 1 WITH ASSIGNMENT
and 366 days for leap year.
LAPTOP AND PC TUTORIAL REPAIR
jfet

I=Prt
statistics
courseoutline
F=P+I
Types of statistics-LEC 1
types of graphs-LEC 2
F=P+Prt
statistics outline

F=P(1+rt)
engineering economy
SIMPLE INTEREST-LEC 1

I=Interest
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MICHAEL JACKSON VIDEO-ECE
P=Principal
ENGINEERING ORIENTATION
PICTURES
I= rate of interest in decimal
 Engineering Economy
N= number of interest periods STUDENT OUTSMART DOCTOR
TO STUDY OR NOT?
F= total amount Functions,Limits and Continuity

Discount- is the difference between the future worth and its

present worth.

Rate of discount- the discount on one unit of principal per unit of

time

D=F-P
D=1-[1/(1+i)]
free automatic

D=i/(1+i) blogcatalog

Equivalent rate of interest

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D=i/(1+i)

i=d/(1-d) rate of interest

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A man borrowed P2000 from a bank and promise to pay the amount for
one year. He received only the amount of P1920 after the bank collected an
advance interest of P80. What was the rate of discoun and the rate of
interest that the bank collected in advance?

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Solution:

rate of discount= (80/2000 )100=0.04=4%

rate of interest=(80/1920)100=0.0417=4.17%

If you borrowed money from your classmate with a simple interest of 12%,
find the present worth of P50000; which is due at the end of 7 months.

SOLUTION:

F=P+I

F=P+Prt

50000=P+P(0.12)(7/12)

P=46728

A price tag of a T-shirt is P1200 is payable in 60 days but if paid with in 30

days it will have a 3% discount. Find the rate of interest.

SOLUTION:

Discount = 0.03(1200)=36

Amount to be paid on 30 days = 1200 – 36=1164

I=Prt

36=1164r(30/360)

r=37%

A loan shark charges 12% simple interest on a P300 loan. How much will
be repaid if the load is paid back in one lump sum after three years?

SOLUTION:

A=P+Prt

A=300+300(0.12)(3)

A=P408

A bank charges 12% simple interest on a P300 loan. How much will be
repaid if the load is paid in one lump sum after three years?
Solution:

A=P+Prt

A=300+300(0.12)(3)

A=P408

Assignment/seatwork
P5000 is borrowed for 75 days at 16% per annum simple interest. How
much will be due at the end of 75 days?

Ans. 5166

If you borrow money from your friend with simple interest of 12%, find the
present worth of P20000, which is due at the end of nine months.

P=18348

A bank loan of P2000 was made at 8% simple interest. How long would it
take in years for the amount of the loan and interest to equal P 3280.

Ans: 8 years

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