Engineering Economics
Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”.

0.1332
0.1373
0.1346
0.1315

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

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Engineering Economics
Which is NOT an essential element of an ordinary annuity?

The amounts of all payments are equal.
The first payment is made at the beginning of the first period.
The payments are made at equal interval of time.
Compound interest is paid on all amounts in the annuity.

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