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Engineering Economics

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

Return clause
Recall clause
Call class
Callability

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Engineering Economics
What are the two classifications of goods and services?

Raw and finished
Local and imported
Ready-made and made-to-order
Consumer and producer

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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
P1,549.64
P1,459.64
P1,345.98

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Engineering Economics
A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money?

0.0914
0.0901
0.0931
0.0941

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Engineering Economics
What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal?

Return of investment
Yield
Interest rate
Rate of return

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Engineering Economics
Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest.

0.1219
0.1203
0.1154
0.1029

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