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Free download in PDF Engineering Economics Short Questions and Answers for competitive exams. These short objective type questions with answers are very important for competitive exams. These short solved questions or quizzes are provided by Gkseries.
41
The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are:
A. The construction of the building now to cost P 400,000
B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000.
By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected?
[A]
P 19,122.15
[B]
P 19,423.69
[C]
P 19,518.03
[D]
P 19,624.49
42
In year zero, you invest P 10,000.00 in a 15% security for 5 years. During that time, the average annual inflation is 6%. How much in terms of year zero pesos will be in the account at maturity?
[A]
P 15,030.03
[B]
P 20,113.57
[C]
P 18,289.05
[D]
P 16,892.34
43
A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?
[A]
P 3,260.34
[B]
P 3,280.34
[C]
P 3,270.34
[D]
P 3,250.34
44
What is the present worth of two P 100 payments at the end of the third year and fourth year? The annual interest rate is 8%.
[A]
P 150.56
[B]
P 152.88
[C]
P 153.89
[D]
P 151.09
45
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?
[A]
P 62.44
[B]
P44.55
[C]
P54.66
[D]
P37.56
46
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%.
[A]
P1,549.64
[B]
P1,459.64
[C]
P1,345.98
[D]
P1,945.64
47
Mandarin Bank advertises 9.5% account that yields 9.84% annually. Find how often the interest is compounded.
[A]
Monthly
[B]
Bimonthly
[C]
Quarterly
[D]
Annually
48
A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year?
[A]
P693.12
[B]
P700.12
[C]
P702.15
[D]
P705.42
49
By the condition of a will, the sum of P20,000 is left to a girl to be held in trust fund by her guardian until it amounts to P50,000. When will the girl receive the money if fund invested at 8% compounded quarterly?
[A]
11.23 years
[B]
11.46 years
[C]
11.57 years
[D]
11.87 years
50
How long will it take money to double itself if invested at 5% compounded annually?
[A]
13.7 years
[B]
14.7 years
[C]
14.2 years
[D]
15.3 years
51
An amount of P1,000 becomes P1,608.44 after 4 years compounded bimonthly. Find the nominal interest.
[A]
11.89 %
[B]
12.00 %
[C]
12.08 %
[D]
12.32 %
52
Which of these gives the lowest effective rate of interest?
[A]
12.35 % compounded annually
[B]
11.90 % compounded annually
[C]
12.20 % compounded annually
[D]
11.60 % compounded annually
Answer: 11.60 % compounded annually
53
What rate of interest compounded annually is the same as the rate of interest of 8% compounded quarterly?
[A]
8.07 %
[B]
8.12 %
[C]
8.16 %
[D]
8.24 %
54
What is the effective rate corresponding to 18% compounded daily? Take 1 year is equal to 360 days.
[A]
19.61 %
[B]
19.44 %
[C]
19.31 %
[D]
19.72 %
55
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?
[A]
9.01 %
[B]
9.14 %
[C]
9.31 %
[D]
9.41 %
56
What is the ordinary interest on P1,500.50 for 182 days at 5.2%?
[A]
P39.01
[B]
P39.82
[C]
P39.45
[D]
P39.99
57
The exact simple interest of P5,000 invested from June 21, 1995 to December 25, 1995 is P100. What is the rate of interest?
[A]
3.90 %
[B]
3.92 %
[C]
3.95 %
[D]
None of these
58
Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”.
[A]
13.15 %
[B]
13.32 %
[C]
13.46 %
[D]
13.73 %
59
Mr. Jun Ramos was granted a loan of P20,000 by his employer Excel First Review and Training Center, Inc. with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note.
[A]
P18,000
[B]
P18,900
[C]
P19,000
[D]
P19,100
60
A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?
[A]
12.07 %
[B]
12.34 %
[C]
12.67 %
[D]
12.87 %
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