Engineering Problem Solving Exam 2

Linear Form Graph Paper

A) Rectilinear
B) Semi-log
C) Log-log

A

Linear Model

Y = mX + B

Power Model (Regular)

Y = bX^m

Power Model (Transformed)

log Y = log B + m(logX)

Power Model Graph Paper

A) Rectilinear
B) Semi-log
C) Log-log

C

Exponential Model (Regular)

Y = be^mX

Exponential Model (Transformed)

ln Y = ln B + mX

Exponential Model Graph Paper

A) Rectilinear
B) Semi-log
C) Log-log

B

Subjective approach, Quick-and-dirty approximation

Selected Points

Objective approach (statistical), Linear regression

Least Squares

Simple Interest

Interest paid only on the original principal

Compound Interest

Interest paid on principal and accumulated interest

Simple Interest Equation

F = P(1 + ni)

Compound Interest Equation

F = P(1 + i)^n

Sinking Fund Annuity

F = A[(1+i)^n - 1 / i]

Installment Loan Annuity

P = [(1+i)^n - 1 / i(1+i)^n]

One arrow in, one arrow out

Compound interest

We know the final, and we make small payments towards that final

Sinking Fund

We know the initial, and get small payments out of it

Installment Loan

Present Worth

Same P, Installment OM, Compound S

Annual Cost

Installment P, Same OM, Sinking S

Future Cost

Compound P, Sinking OM, Same F

If two projects have different design lives, they must be compared using...

Annual Accounting Period

Sinking Fund Definition

Annuity designed to produce an amount of money at some future time (F)

Installment Loan Definition

Annuity used to retire a debt by making periodic payments instead of a single large payment at the end of the given time period

Accounting Period

Time interval over which interest is paid