ENGINEERING ECONOMICS 01

100問 • 1年前

問題一覧

At an annual rate of return of 8 %, what is the future worth of P 100 at the end for four years?

A. P 136

If you borrow money from your friend with interest rate of 12 %, find the present worth of P 20,000, which is due at the end of nine months.

C. P 18,348.6

Determine the interest on P 6000 for 9 months and 10 days if the rate of interest is 12 %.

B. P 560.00

How much money must you invest today in order to withdraw P 1000 per year for 10 years if the interest rate is 12 %?

B. P 5650

If Php 500 is invested at the end of each year for six years, at an effective annual interest rate of 7 %, what is the total amount available upon the deposit of the sixth payment?

B. Php 3580

In five years, Php 18,000 will be needed to pay for a building renovation. In order to generate this sum, a sinking fund consisting of three annual payments is established now. For tax purposes, no further payments will be made after three years. What payment are necessary if money is worth 15% per annum?

B. Php 3920

A person pays interest on a loan semiannually at a nominal annual interest rate of 16 %. What is the effective annual interest rate?

D. 16.64 %

The Balance sheet of Allied Company is as follows: What is its acid test ratio?

C. 0.85

What is the annual rate of interest if P 265 is earned in four months on an investment of P 15,000?

C. 5.30 %

A man borrowed P 100,000 at the interest rate of 12% per annum, compounded quarterly. What is the effective rate?

B. 12.55 %

By the condition of a will, the sum of P 20,000 is left to a girl to be held in trust fund by her guardian until it amounts to P 50,000. When will the girl receive the money if the fund is invested at 8% compounded quarterly?

B. 11.57 years

At what rate of annual interest will an investment quadruple itself in 12 years?

B. 12.2 %

How many months at an interest rate of 1 percent per month does money have to be invested before it will double in value?

D. 70 months

A bank is advertising 9.5 % accounts that yield 9.84 % annually. How often is the interest compounded?

B. Quarterly

It is defined to be the capacity of a commodity to satisfy human want.

D. Utility

It is the amount which a willing buyer will pay to a willing seller for a property where each has equal advantage and is under no compulsion to buy or sell.

B. Market value

What interest rate compounded monthly is equivalent to 10% effective rate?

D. 9.57 %

If a credit pays 4.125 % interest compounded quarterly, what is the annual interest rate?

A. 4.189 %

A firm borrows $ 2000 for six years at 8%. At the end of six years, it renews the loan for the amount due plus $ 2000 more for two years at 8%. What is the lump sum due?

B. $6035

An individual contributes P 200 per month to a retirement account. The account earns interest at a nominal annual rate of 8% with interest being credited monthly. What is the value of the account after 35 years?

D. P 459,000

What is the exact simple interest of P 2000 if invested at 15% from January 23, 1995 to March 12, 1995?

C. P 39.45

A nominal rate of 12% compounded semi-monthly will have an effective rate of how much?

A. 12.72 %

A young woman, 22 years old has just graduated from college. She accepts a good job and desires to establish her own retirement fund. At the end of each year thereafter she plans to deposit P 2000 in a fund at 15 % annual interest. How old will she be when the fund has an accumulated value of P 1,000,000?

B. 53 years

At a certain interest rate compounded semi-annually, P 5000 will amount to P 20,000 after 10 years. What is the amount at the end of 15 years?

C. P 40,029.72

The purchase price of a car is P 25,000, Mr. Smith makes a down payment of P 5000 and borrows the balance from a bank at 6 % interest for five years. Calculate the nearest value of the required monthly payments to pay-off the loan.

C. P 400

What is the exact simple interest of P 2000 if invested at 12 % from January 23, 1995 to March 12, 1995?

C. P 31.56

P 200,000 was deposited on January 1, 1988 at an interest rate of 24% compounded semi-annually. How much would the sum on January 1, 1993?

A. P 621,170

The president of a growing engineering form wishes to give each of 50 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded monthly so that each employee will receive a P 1000 bonus?

B. P 3940

A man borrowed P 2000 from a bank and promise to pay the amount for one year. He received only the amount of P 1920.00 after the bank collected an advanced interest of P 80.00. What was the rate of discount and the rate of interest the bank collected in advance?

D. 4.17 %, 4 %

A man borrowed from a bank under a promissory note that he signed in the amount of P 25,000 for a period of one year. He received only the amount P 21,915 after the bank collected the advance interest and an additional amount of P 85.00 for the inspection fee. What was the rate of discount, the rate interest that the bank collected in advance?

A. 12 %, 13.64 %

How long must a P 4000 note bearing 4 % simple interest run to amount P 4135?

C. 304 days

Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is 12 % compounded quarterly. How much was initially borrowed if quarterly payment is P 2000.00?

A. P 10,834.38

A man planned to endow P 1 million to his son on his son’s 21𝑠𝑡 birthday. How much is his semi-annual deposit in a special account that earns 5 % compounded quarterly if the first deposit was made when the son was 4 ½ years old?

D. P 18,952.29

A piece of machinery can be bought for P 10,000 cash or for P 2000 down and payments of P 750 per year for 15 years. What is the annual interest rate for the time payments?

B. 4.61 %

What is the present worth of a perpetuity of P 5000 at 5 % compounded semi-annually?

C. P 200,000

What is the present worth of P 500 deposited at the end of every three months for 6 years if the interest rate is 12 % compounded semi-annually?

D. P 8,504

A machine estimated to have a life of 20 years is purchased. There is no maintenance required for the first 10 years but will require P 2000 per year for the second 10 years. How much must be invested annually at 3.5 % interest during the life of the machine to pay off the maintenance costs?

B. P 830

A man requires a loan of P 500,000. He will amortize his loan by 10 annual payments but will commence 5 years after the loan was acquired. If money is worth 10 % compounded annually, what was his annual amortization?

A. P 119,137.77

Determine the exact simple interest on P 5000 for the period from Jan 15 to Nov 28,1992, if the rate of interest is 22%.

A. P 955.74

How much must you invest today in order to withdraw P 2,000 annually for 10 years if the interest rate is 9 %?

D. P 12,835.32

A graduating high school student decides to take a year off and work to save money for college. The student plans to invest all money earned in savings account earning 6 % interest, compounded quarterly. The student hopes to have P 5000 by the time school starts in 12 months. How much money will the student have to save each month?

C. P 407

What rate of interest compounded annually is the same as the rate of interest of 8 % compounded quarterly?

C. 8.24 %

Find the annual payment to extinguish a debt of P 10,000 payable for 6 years at 12 % interest annually.

A. P 2,432.26

If P 1600 earns P 48 in 9 months, what is the annual rate of interest?

D. 4 %

A college student borrows P 10,000 today at 10% interest compounded annually. Four years later, the student makes the first repayment of P 3000. Approximately how much money will the student still owe on the loan after the first payment?

D. P 11700

A person invests P 450 to be collected in eight years. Given that the interest rate on the investment is 14.5 % per year, compounded annually, what sum in pesos will be collected eight years hence?

D. P 1329

A firm borrows P 2000 for six years at 8 %. At the end of six years, it renews the loan for the amount due plus P 2000 more for two years at 8 %. What is the lump sum due?

A. P 6035

What annuity is required over 12 years to equate with a future amount of P 20,000? Assume i = 6 % annually.

A. P 1,185.54

What is the effective rate corresponding to 16 % compounded daily? Take 1 year ═ 360 days.

B. 17.35 %

P 1500 was deposited in a bank account, 20 years ago. Today it is worth P 3000. Interest is paid semi-annually. Determine the interest rate paid on this account.

A. 3.5 %

P 5000 is put into an empty savings account with a nominal interest rate of 5 %. No other contributions are made in the account. With monthly compounding, how much interest will have been earned after five years?

D. P 1420

A company invests $ 10,000 today to be repaid in five years in one lump sum at 12 % compounded annually. If the rate of inflation is 3 % compounded annually. How much profit in present day dollars, is realized over the five years?

C. $5202

What is the effective annual interest rate on a loan if the nominal interest rate is 12 % per year compounded quarterly?

D. 12.55 %

You need $ 4000 per year for four years to go to college. Your father invested $5000 in 7% account for your education when you were born. If you withdraw the $4000 at the end of your 17th, 18th, 19th and 20th years, how much money will be left in the account at the end of your 21st year?

A. $1700

In year zero, you invest $10,000 in a 15% security for five years. During that time, the average annual inflation is 6%. How much, in terms of year zero dollars, will be in the account at maturity?

B. $ 15,030

A person pays interest on a loan semiannually at a nominal annual interest rate of 16 %. What is the effective annual interest rate?

D. 16.64 %

A firm is considering renting a trailer at $300 per month. The unit is needed for five years. The leasing company offers a lump sum payment of $24,000 at the end of five years as an alternative payment plan, but is willing to discount this figure. The firm places a value of 10 % (effective annual rate) on invested capital. How large should the discount be in order to be acceptable as an equivalent?

D. $1030

Consider a deposit of $1000, to be paid back in one year by $975. What are the conditions on the rate of interest, i % per year compounded annually, such that the net present worth of the investment is positive? Assume 𝑖 ≥ 0.

D. There are no conditions on i that will make it possible.

Consider a deposit of P 6000, to be paid back in one year by P 7000. What are the conditions on the rate of interest, i % per year compounded annually, such that the net present worth of the investment is positive? Assume 𝑖 ≥ 0

C. 0 ≤ 𝑖 ≤ 16.7 %

A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units, and the line operates for seven hours per day, five days per week. What is the maximum production per unit, in hours, required of the line in order to meet demand?

C. 1 hour

Tops Corporation’s gross margin is 45% of sales. Operating expenses such as sales and administration are 15% of sales. Tops is in a 40% tax bracket. What percent of sales is their profit after taxes?

B. 18 %

A bank pays one percent interest on savings accounts four times a year. The effective annual interest rate is:

D. 4.06 %

In five years, $18,000 will be needed to pay for a building renovation. In order to generate this sum, a sinking fund consisting of three annual payments is established now. For tax purposes, no further payments will be made after three years. What payments are necessary if money is worth 15% per annum?

B. $3919

If $200 is deposited in a savings account at the beginning of each of 15 years and the account draws interest at 7% per year, compounded annually, the value of the account at the end of 15 years will be most nearly ______.

B. $5400

A man owes P500, due in 3 years and P800 due in 7 years. He is allowed to settle these obligations by a single payment on the 6th year. Find how much he has to pay on the 6th year if money is worth 14% compounded semi-annually.

A. P 1,449.12

A man borrowed P 2,000.00 from a bank and agreed to pay the loan at the end of one year. The bank discounted the loan and gave him P 1950 in cash. Determine the rate of discount.

B. 2.5 %

If a machine is purchased on installment and the buyer makes an P 80,000.00 down payment and owes a balance of P 150,000 in 2 years. Determine the machine cash value if money is worth 14% compounded quarterly.

B. P 193,912.00

A machine was purchased under these terms: P 30,000 down and P 5,000 each month for 5 years. If money is worth 12% compounded monthly, what is the cash price of the machine?

D. P 254,775.19

Determine the amount that must be deposited every 3 months in a fund paying 12% compounded quarterly in order to have P 25,000 in 8 years.

C. P 476.17

The salary of an employee’s job has five levels, each one 5% greater than the one below it. Due to circumstances, the salary of the employee must be reduced from the top (fifth) level to the second level, which means a reduction of P 3000.00 per month. What is the employee’s present salary per month?

A. P 22,032.50

A man obtained a loan of P 50,000.00 at the rate of 6% compounded annually in order to repair his mistress’ house. How much must a man pay monthly to amortize the loan without a period of ten years?

C. P 550.90

What is the present value of P 5,000.00 in due in 8 years if money is worth 12% compounded semi-annually?

D. P 1,968.23

The difference between what a negotiable paper is worth in the future and its present worth is known as:

D. Discount

Those cost that arise at the result of a change in operations or policy or it is the ratio of a small increment cost and a small increment of output.

C. Differential cost

What is the accumulated amount after three years of P 6500 invested at the rate of 12% per year compounded semi-annually?

B. P 9,220.37

Mr. Johnson borrows $100,000 at 10% effective annual interest. He must pay back the loan over 30 years with uniform monthly payments due on the first day of each month. What does Mr. Johnson pay each month?

A. $839

What interest rate, compounded quarterly, is equivalent to a 9.31 % effective interest rate?

D. 9.00 %

How many months at an interest rate of 1 percent per month does money have to be invested before it will double in value?

C. 70 months

A bank charges 1 ½ per month on the unpaid balance for purchases made with its credit card. This is equivalent to what effective annual interest rate?

D. 19.5 %

For some interest rate i and some number of interest periods n. the uniform series capital recovery factor is 0.0854 and the sinking fund factor is 0.0404. The interest rate i must be _____.

B. 4 ½ %

What present sum would need to be put in a savings account now to provide a $1000 annual withdrawal for the next 50 years, if interest is 6%? The present sum is closest to:

B. $ 10,000

On March 1, 2014 a man obtains a loan of P 1500 from his friend and signs a note promising to pay the principal and accumulated simple interest at the rate of 5% at the end of 120 days. On May 15, 2014, his friend discounts the note at the bank whose discount rate is 6%. How much does he receive?

A. P 1513.36

If the loan was for 15 months at 16.8 % interest a year and the repayment on a loan was P 12,100.00, how much was the principal?

B. P 10,000.00

Determine the accumulated value of P 2,000.00 in 5 years it is invested at 11 % compounded quarterly.

A. P 3,440.00

The sum of P 15,000.00 deposited in an account earning 4% per annum compounded quarterly, will become P 18,302.85. Determine the effective rate of interest per year.

C. 4.06 %

Find the number of years when P 2,500.00 is compounded to P 5,800.00 if invested at 12% compounded quarterly.

C. 7.12 years

What is the effective rate equivalent of 12% compounded quarterly?

A. 12.55 %

What rate compounded-quarterly is equivalent to 14% compounded semi- annually?

D. 13.76 %

A condition where only few individuals produce a certain product and that any action of one will lead to almost the same action of the others.

A. Oligopoly

Grand total of the assets and operational capability of a corporation.

A. Authorized capital

The worth of the property equals to the original cost less depreciation.

D. Book value

Liquid assets such as cash and other assets that can be converted quickly into cash, such as accounts receivable and merchandise are called:

C. Current assets

The provision in the contract that indicates the possible adjustment of material cost and labor cost.

B. Escalatory clause

Decrease in the value of a physical property due to the passage of time.

D. Depreciation

An association of two or more individuals for the purpose of operating a business as co-owners for profit.

B. Company

We may classify an interest rate, which specifies the actual rate of interest on the principal for one year as

D. Effective rate

What is the present worth of P 6000 every six months for 16 years with interest at 7% compounded semi-annually?

A. P 114,413.19

These are the products or services that are desired by human and will be purchased if money is available after the required necessities have been obtained.

C. Luxury

What is the present worth of a P 100 annuity over a ten-year period, if the interest rate is 8 %?

A. P 671

100

A 400-year-old consulting engineer wants to set up a retirement fund to be used starting at age 65. P 20,000 is invested now at 6% compounded annually. Approximately how much money will be in the fund at retirement?

B. P 86000

Machine Design ( 1st Set )

Jacky Shane Luyas Buhia · 20問 · 2年前

Machine Design ( 1st Set )