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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
The first cost to be incurred if the piece of equipment now in place had been bought for a second hand dealer or some other business is called ______.

Material cost
Fixed cost
First cost
In-place value

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Engineering Economics
What is an index of short-term paying ability?

Profit margin ratio
Price-earnings ratio
Gross margin
Current ratio

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Engineering Economics
What is the term for an annuity with a fixed time span?

Perpetuity
Annuity certain
Annuity due
Ordinary annuity

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Engineering Economics
What is defined as the interest on a load or principal that is based only on the original amount of the loan or principal?

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

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Engineering Economics
A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments.

P 43,489.47
P 43,600.10
P 43,763.20
P 43,263.91

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