Concept (10 Points Total). Please select the best answer from the given options
1) (6 Points) Identify the following interest rate statements as either nominal or effective:
a. 10 percent per year compounded quarterly
b. 3 percent per quarter compounded weekly
c. Effective 5 percent per quarter compounded monthly
2) (2 Points) If $1000 is deposited in a savings account today and the account draws simple
interest at 5% per year, the value of the account at the end of 10 years will be nearly:
a. $1629
b. $1500
c. $1050
d. $500
3) (2 Points) For any engineering economy problem, how many of the following symbols:
P, F, A, i, n must be given to solve the problem?
a. One
b. Two
c. Three
d. Four
e. All five