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Engineering Economics

Engineering Economics
The exact simple interest of P5,000 invested from June 21, 1995 to December 25, 1995 is P100. What is the rate of interest?

0.0395
0.0392
0.039
0.0398

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Engineering Economics
First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes?

0.18
0.2
0.19
0.21

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Engineering Economics
A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

P 2,500.57
P 2,544.45
P 2,504.57
P 2,540.56

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

Ordinary annuity
Perpetuity
Annuity due
Deferred annuity

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Engineering Economics
What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?

Nominal rate of interest
Compound interest
Simple interest
Effective rate of interest

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Engineering Economics
What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results?

Functional depreciation
Demand depreciation
Physical depreciation
Design depreciation

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