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
Time value of money
Yield
Present worth factor

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Engineering Economics
It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate?

16.02 %
16.47 %
16.28 %
16.32 %

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Engineering Economics
Which is NOT an essential element of an ordinary annuity?

The first payment is made at the beginning of the first period.
The amounts of all payments are equal.
The payments are made at equal interval of time.
Compound interest is paid on all amounts in the annuity.

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