Section A
Solving Typical FE Problems How to use this section: Each problem-type
(What to do) is labeled and a solution approach
(How to do it) is detailed. Solved examples of FE-like problems using the solution approach are presented,
followed by a reference to related FE review problems included in Section B
of this material. Once you understand the solution approach here, you should
be able to proceed to the referenced FE review problems. A good strategy is
to cover several of the sections here, then go to the FE review problems in
Section B to determine how well you can do.
1. What to do: Identify Nominal and Effective Interest Rates 2. What to do: Find an Effective Interest Rate from a Nominal Rate and Vice Versa 3. What to do: Find P or F for Single Payments and Nominal Interest Rates 4. What to do: Compare Alternatives by PW or AW Analysis 5. What to do: Find the Present Worth of a Bond 6. What to do: Find the Present Worth When Inflation is Considered 7. What to do: Determine Asset Depreciation by SL or MACRS Methods 8. What to do: Find Asset Book Value by SL or MACRS 9. What to do: Find the Breakeven Point |