Are those products or services that are desired by humans and will be purchased if money is available after that required necessities have been obtained?

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Module 1 Engineering Economy

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Module 1 Engineering Economy (1)

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This is the first in a series of seven papers on interest rates and it covers the basic terms and information required for a fuller understanding of the significance of interest rates: the instruments that interest rates apply to, the bank interest margin which plays an important transmission role in monetary policy, time value of money, types, relationship between rates and prices, and other relevant issues. The seven papers cover: (1) what are interest rates?; (2) relationship of interest rates; (3) composition of interest rates; (4) interest rate discovery; (5) bank liquidity & interest rate discovery; (6) role of interest rates; (7) an optimal rate of interest: the natural rate.

F = P(1 + i)ⁿ

i = r/m

n = (t)(m)

I = F - P

.....where,
F = future worth or compound amount
= the amount to be paid or amount accumulated

P = present worth or principal
= the amount borrowed or invested

i = effective interest per compounding period (per interest period)

n = total number of compounding

I = interest earned

r = nominal interest rate

t = number of years of investment

m = number of compounding per year

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Are those products or services that are desired by humans and will be purchased if money is available after the required necessities have been obtained?

What refers to the goods and services that are desired by human An will be acquired only after all the needs have been satisfied?

What is a market situation whereby there is only one buyer of an item for which there is no goods substitute?

What type of provision in the contract that indicates the possible adjustment of material cost and labor cost?