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?

16.02 %
16.28 %
16.47 %
16.32 %

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Engineering Economics
The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are:A. The construction of the building now to cost P 400,000B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000.By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected?

P 19,518.03
P 19,122.15
P 19,624.49
P 19,423.69

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Engineering Economics
Using factor method, the depletion at any given year is equal to:

Initial cost of property times number of units sold during the year
Initial cost of property divided by the total units in property
Initial cost of property times number of unit sold during the year divided by the total units in property
Initial cost of property divided by the number of units sold during the year

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