Engineering Economics
A P 1, 000, 6% bond pays dividend semiannually and will be redeemed at 110% on June 21, 204. It is bought on June 21, 2001 to yield 4% interest. Find the price of the bond.

P 1,144.81
P 1,122.70
P 1,155.06
P 1,133.78

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Engineering Economics
Pick up the correct reason for making conceptual (or preliminary) estimate from the following:

All of these
To have a check on a definitive cost estimate
To compute target estimate for the owner while drawing and specifications are in initial stage
To check quotations from contractors and/or sub-contractors

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Engineering Economics
It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate?

16.32 %
16.47 %
16.02 %
16.28 %

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