CME 182 Engineering Design and Graphics CME 250 Statics CME 260 Mechanics of Materials CME 390 Composites Manufacturing CME 401 Engineering Economics CME 420 Manufacturing Systems Analysis CME 475 Design Project I CME 480 Design Project II
Office Hours D2L Brightspace Dept of Composite Materials Engineering
Professor Dennehy
Department of Composite Materials Engineering
Stark Hall 203F (507) 457-5276 kdennehy@winona.edu
CME 401 Engineering Ecomonics
Description Information Objectives Calendar Requirements
Depreciation Income Taxes Cash Flows Inflation Capitalized Costs Deciding on Investments Bonds
Homework Problems

Cash Flows (periodic compounding)

1. A person plans to deposit $8,000 in a savings account at the end of each year for 5 years. The bank pays interest at the rate of 12% per year, compounded quarterly, on such a plan. Calculate how much money the person can expect to withdraw at the end of 5 years.

2. What will be the monthly payment on a 30-year, $100,000 mortgage loan, where the interest rate is 12% per year, (a) compounded monthly? (b) compounded daily (assume all months are 30 days)?