Civil Engineering - Engineering Economy - Discussion

33.

If P is principal amount, i is the rate of interest and n is the number of periods in years, then the interest factor is :

Answer: Option A

Explanation:

No answer description available for this question.

Hister said: (Aug 5, 2021)
Can anyone explain this?

Vaxoo said: (Jun 15, 2022)
If P is the principal then the simple compound after the first year(A)=P+Pin.(can also be written as P(1+i*n). Now, the interest factor simply is by how many times folds the principal has increased. So, the principal has been increased by A/P =[P(1+ni)]/P =(1+ni).

Name *:

Email : (optional)

» Your comments will be displayed only after manual approval.