1. What are some other combinations of interest and years that meet the rule of 72?
2. Why does the combination of seven years and 10% not equal 200 in the simple interest Table 17.3?
3. Why does a GC concern itself with a subcontractor’s financial strength?
4. The construction contract between ECC and Northwest Resorts is for $24.5 million. Is this the ‘cost,’ ‘value,’ ‘price,’ or ‘worth’? Note: it could be more than one of these choices.
5. Why should a PM and cost engineer be aware of TVM?
1. At what interest rate (i) would a PV of $100 be the same as a FV of $100 in any given year (n)?
2. When would a PV cost figure be greater than a FV cost figure?
3. Do you have money in a savings account? You should! How much interest are you earning? Is it enough? If left in place at this interest rate, when would your savings account double?