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Engineering Economics

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

Call class
Callability
Recall clause
Return clause

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Engineering Economics
A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan?

P 6,999.39
P 6,222.39
P 6,922.93
P 6,292.93

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Engineering Economics
What refers to the amount of a product made available for sale?

Demand
Good
Supply
Product

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Engineering Economics
What is defined as the interest on a load or principal that is based only on the original amount of the loan or principal?

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

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Engineering Economics
If ‘S’ is the future capital accumulated in ‘n’ years at the rate of interest ‘I’ per annum, then present worth is:

S/(1 + i)n
S (1 + i)n
None of these
S (1 + i)1/n

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Engineering Economics
What refers to the present worth of cost associated with an asset for an infinite period of time?

Operating cost
Annual cost
Increment cost
Capitalized cost

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