Engineering Economy Hand Written Notes – Free Download in PDF!

Want to learn money math for engineers? These free PDF notes explain Engineering Economy in easy English—perfect for students, teachers, and professionals!

📥 Download Engineering Economy PDF Notes (100% Free!)

What’s Inside the PDF?

1. Simple vs. Compound Interest

• Simple Interest: Only the original money earns interest.

  $$I=P\times n\times i(\text{Interest}=\text{Principal}\times \text{Time}\times \text{Rate})$$

  Example: Borrow $1,000 at 5% for 3 years → Interest = $150.

• Compound Interest: Interest earns more interest (like a snowball!).

  $$F=P(1+i{)}^n(\text{Future Value}=\text{Principal}\times (1+\text{Rate}{)}^{\text{Time}})$$

  Example: $1,000 at 5% for 3 years → Future Value = $1,157.63.

2. Cash Flow Diagrams

• A picture of money moves:

  • ↑ = Money you get (e.g., salary).

  • ↓ = Money you spend (e.g., bills).

3. Loans & Payments

• How loans work:

  • Pay small amounts (A) over time.

  • Formula:

    $$A=P\left[\frac{i(1+i{)}^n}{(1+i{)}^n-1}\right](\text{Monthly Payment})$$

  Example: $10,000 loan at 10% for 5 years → Pay $212/month.

4. Inflation & Real Value

• Inflation: Prices go up → Money buys less.

  $$\text{Future Cost}=\text{Today’s Price}\times (1+\text{Inflation Rate}{)}^{\text{Years}}$$

  Example: A $20,000 machine with 6% inflation in 5 years → $26,765.

5. Depreciation (How Things Lose Value)

• Straight-Line Method: Same loss every year.

  $$\text{Yearly Loss}=\frac{\text{Cost}-\text{Scrap Value}}{\text{Life}}$$

  Example: A $50,000 machine over 10 years → $4,000/year.

Who Should Download This?

🎓 Engineering Students (Civil, Mechanical, Electrical)
💰 Business Owners (Learn smart investments!)
📊 Banking & Finance Pros (Master interest calculations)

Why These Notes?

✔ No Jargon – Easy like a storybook!
✔ Solved Examples – Step-by-step math.
✔ Diagrams & Tables – Learn faster.
✔ Free PDF – No hidden fees!

Real-Life Examples

1. Buying a Car:

   • Loan: $15,000 at 7% for 5 years → Pay $297/month.

2. Saving for College:

   • Invest $200/month at 8% for 18 years → Get $96,000.

Final Thoughts

Engineering Economy helps you make smart money choices. Whether you’re saving, borrowing, or investing, these notes make it easy-peasy!

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