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Engineering Economics

Engineering Economics
The financial health of the company is measured in terms of:

Liquidity
Solvency
Relative risk
All of these

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Engineering Economics
A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?

P 3,270.34
P 3,250.34
P 3,280.34
P 3,260.34

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

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Engineering Economics
In year zero, you invest P 10,000.00 in a 15% security for 5 years. During that time, the average annual inflation is 6%. How much in terms of year zero pesos will be in the account at maturity?

P 15,030.03
P 20,113.57
P 18,289.05
P 16,892.34

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Engineering Economics
By the condition of a will, the sum of P20,000 is left to a girl to be held in trust fund by her guardian until it amounts to P50,000. When will the girl receive the money if fund invested at 8% compounded quarterly?

11.87 years
11.57 years
11.46 years
11.23 years

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Engineering Economics
What is the present worth of two P 100 payments at the end of the third year and fourth year? The annual interest rate is 8%.

P 152.88
P 150.56
P 151.09
P 153.89

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