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Engineering Economics

Engineering Economics
A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment?

0.03
0.04
0.037
0.034

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Engineering Economics
If ‘P’ is principal amount, ‘i’ is the rate of interest and ‘n’ is the number of periods in years, then the interest factor is:

(ni - 1)
None of these
ni
(1 + ni)

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Engineering Economics
The price at which the callable bond will be redeemed from the bondholder is called ______.

Call value
Face value
Redemption value
Par value

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Engineering Economics
Miss Calledo deposited P 1,000, P 1,500 and P 2,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 10% per annum. How much is in the account at the end of the 4th year?

P 4,860.00
P 4,840.00
P 4,880.00
P 4,820.00

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Engineering Economics
The owner of the construction company makes use of the estimate:

All of these
To determine economic feasibility of the project
To determine the capital investment costs
To assist in financial arrangements

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Engineering Economics
A college freshman borrowed P2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected the advance interest of P80.00. What was the rate of discount?

0.0425
0.04
0.0415
0.0367

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