What Is the Reliability of the System Connected as Shown

question 6

Short Answer

What is the reliability of the system connected as shown below?

---

Definitions:

Discounting

The process of determining the present value of a future amount of money or stream of cash flows given a specific rate of return.

Compounded Annually

Interest on an investment that is calculated once a year on both the initial principal and the accumulated interest from previous periods.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so that the balance grows at an increasing rate.

Compounded Annually

A method of calculating interest in which the accumulated interest is added to the principal at the end of each year, resulting in interest on interest in successive years.