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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
0.0914
0.0901
0.0941

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Engineering Economics
The person desires to pay off the amount in 10 equal annual instalments. The amount of each installment is:

Rs. 6638
None of these
Rs. 5638
Rs. 7738

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Engineering Economics
What refers to the present worth of all the amount the bondholder will receive through his possession of the bond?

Face value of bond
Value of bond
Redeemed value of bond
Par value of bond

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Engineering Economics
What is the type of annuity where the payments are made at the beginning of the each period starting from the first period?

Deferred annuity
Perpetuity
Annuity due
Ordinary annuity

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Engineering Economics
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?

The initial depreciation is low
The initial deprecation is high
Rate of interest cannot be exactly determined
Unstable economy

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Engineering Economics
A man invested P110,000 for 31 days. The net interest after deducting 20% withholding tax is P890.36. Find the rate of return annually.

0.115
0.1195
0.1232
0.1175

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