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Consider the Equation F = DP/R

question 15

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Consider the equation F = DP/R. It describes the flow (F) of fluid in a tube in which there is a pressure difference (DP) between the two ends and a resistance (R) to flow.The equation indicates that

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Definitions:

Opportunity Rate

The return of a foregone option when another investment is chosen, embodying the concept of opportunity cost.

Time-Value

The belief that possessing money today is more valuable than having the same sum later, due to its capability to accrue earnings.

Compounded Monthly

A method of calculating interest where the earned interest is added to the principal balance at the end of each month, so that the interest for the next month is calculated on a higher balance.

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