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Engineering Economics

Engineering Economics
What is the feature of some bonds whereby the issuer can redeem it before it matures?

Recall clause
Callability
Call class
Return clause

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Engineering Economics
A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%.

P1,945.64
P1,459.64
P1,549.64
P1,345.98

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Engineering Economics
What type of bond which can be redeemed before maturity date?

Preferred bond
Incorporators bond
Callable bond
Registered bond

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Engineering Economics
All are classified under direct labor expenses EXCEPT one. Which one?

Inspection cost
Testing cost
Supervision cost
Assembly cost

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Engineering Economics
A uniform series of payment occurring at equal interval of time is called ______.

Annuity
Depreciation
Amortization
Bond

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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”.

0.1315
0.1346
0.1332
0.1373

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