Civil Engineering - Engineering Economy - Discussion
Discussion Forum : Engineering Economy - Section 1 (Q.No. 33)
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 :
Discussion:
3 comments Page 1 of 1.
JohnBanegaDon said:
1 month ago
@Vaxoo.
Then it becomes Amount factor, isn't it? You are dividing the amount by principal, and calling it an interest factor, which doesn't fit good.
Then it becomes Amount factor, isn't it? You are dividing the amount by principal, and calling it an interest factor, which doesn't fit good.
Vaxoo said:
3 years ago
If P is the principal then the simple compound after the first year(A)=P+P*i*n.(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).
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).
(2)
Hister said:
4 years ago
Can anyone explain this?
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