Compare the Economic Values of Two Options Given an Annual

question 166

Multiple Choice

Compare the economic values of two options given an annual rate of 9.25%. Option 1 - $900 in 5 months and $400 in 9 months. Option 2 - $550 in 7 months and $825 in 10 months. Given the following information, choose the best option.

• A) Option 1 - benefit of $52.35
• B) Option 1 - benefit of $47.15
• C) No difference between options
• D) Option 2 - benefit of $52.35
• E) Option 2 - benefit of $47.15

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Definitions:

Bevel-Groove

A type of weld preparation where the edges of the parts to be joined are cut at an angle to accommodate a filler material.

J-Groove

A specific type of groove weld joint design that resembles the shape of the letter "J," used to facilitate deeper penetration of the weld and minimize weld material.

Flare Bevel-Groove

A type of groove weld where one piece is curved, and its edge is welded to the flat surface of another piece, often used for pipes or tubes.

Flange Welds

Welds that join flanges, which are plates or rings to form a rim or edge, to other components.