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Engineering Economics

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

Callability
Recall clause
Return clause
Call class

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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?

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

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

Ordinary annuity
Annuity due
Perpetuity
Annuity certain

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Engineering Economics
You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the money from the bank?

P54.66
P37.56
P44.55
P 62.44

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Engineering Economics
The person desires to pay off the amount in 10 equal annual instalments. The amount of each installment is:

Rs. 6638
None of these
Rs. 7738
Rs. 5638

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Engineering Economics
What is a stock of a product which is held by a trade body or government as a means of regulating the price of that product?

Buffer stock
Hoard stock
Withheld stock
Stock pile

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