If = 16.1

question 30

Multiple Choice

If = 16.1,
= .03,and n = 6,and if the specifications are [15.9,16.3],is the process capable?

• A) Yes
• B) No

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Definitions:

Future Value Factor

A factor used to calculate the future value of a cash flow at a certain rate of interest over a specific number of periods.

Interest Rate

is the percentage of principal charged by the lender for the use of its money or the return earned on deposit accounts.

Present Value

The current value of a future amount of money or stream of cash flows, discounted at a particular interest rate.

Simple Interest

Interest assessed only on the principal sum, or on the part of the principal that still needs to be repaid.