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? Effective rate of interest Compound interest Simple interest Nominal rate of interest Effective rate of interest Compound interest Simple interest Nominal rate of interest ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn? Interest rate Yield Present worth factor Time value of money Interest rate Yield Present worth factor Time value of money ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics A bond without any security behind them except a promise to pay by the issuing corporation is called ______. Trust bond Joint bond Debenture bond Common bond Trust bond Joint bond Debenture bond Common bond ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics If ‘P’ is principal amount, ‘I’ is the rate of interest per annum and ‘n’ is the number of periods in years, the compound amount factor (CAF) is: None of these (1 + i)n (1 + i)(1/2n) √(n + i) None of these (1 + i)n (1 + i)(1/2n) √(n + i) ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled? Authorized capital stock Preferred stock Incorporator stock Common stock Authorized capital stock Preferred stock Incorporator stock Common stock ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics What is defined as any tangible economic activity that contributes directly or indirectly to the satisfaction of human want? Services Goods Commodities Goods or commodities Services Goods Commodities Goods or commodities ANSWER DOWNLOAD EXAMIANS APP
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