TIME VALUE OF MONEY I SMPLE INTEREST- SINGLE PAYMENT 9 Example: $100 invested at 5% per annum At beginning of Year l, invest $100 Atend of Year l, receive(0.05)(100)=$5.00 At beginning of Year 2, leave the $100 on deposit Atend of Year 2, receive another $5.00 And so on, as long as we leave the s100 on deposit. 10/1599 Engineering economics 110/15/99 Engineering Economics 1 4 TIME VALUE OF MONEY I SIMPLE INTEREST - SINGLE PAYMENT t Example: $100 invested at 5% per annum At beginning of Year 1, invest $100 At end of Year 1, receive (0.05)(100) = $5.00 At beginning of Year 2, leave the $100 on deposit At end of Year 2, receive another $5.00 And so on, as long as we leave the $100 on deposit