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Engineering Economics

Engineering Economics
A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money?

0.0931
0.0901
0.0941
0.0914

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Engineering Economics
The difference between the present and future worth of money at some time in the future is called ______.

Inflation
Discount
Deduction
Depletion

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Engineering Economics
What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?

Nominal rate of interest
Compound interest
Simple interest
Effective rate of interest

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Engineering Economics
A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

0.1234
0.1267
0.1207
0.1287

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Engineering Economics
What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render?

Physical depreciation
Demand depreciation
Design depreciation
Functional depreciation

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Engineering Economics
How long will it take money to double itself if invested at 5% compounded annually?

15.3 years
14.2 years
14.7 years
13.7 years

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