1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
A bank changes 12% simple interest on a P 300 loan. How much will be repaid if the loan is paid back in one lump sum after three years? //408.00
A building has a salvage value of 1 million at the end of its life of 50 years. The annual depreciation is 2 million. Using Straight Line Method, in how many years
after can the building be still sold for 30 million? /// 35.5
A car enthusiast bought a luxury car for $1,000,000. If the car lasts for 10 years, what is the d. $92,160
A company issued 50 bonds of P 1000 face value each, redeemable at par at the end of the 15 years to accumulate the funds required for redemption. 37,519
A company purchase an asset… what is the depreciation in the third year? Use sum of the years digits depreciation. 857
A company which manufactures electric motors… The number of motors that must be sold each month to break even is closest to: 160
A company which manufactures electric motors… The number of motors that must be sold each month to break even is closest to: 160
A computer shop pays 100 per hour for the land rental. It costs the shop 10 pesos per unit per hour a. 40
A computerized machine chap will require a fixed capital investment… what is the rate of return on the total investment? 14.31%
A debt of P 10000 with 10% interest compounded semi-annually is to be amortized… Determine the semi-annual payment. 1295.05
A diagram drawn to help visualize and simplify problems having diverse receipts and disbursements is known as ___. Ans Cash-flow (no searched ans)
A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The b. Php 99,601.71
A gadget has a selling price of 400. If the selling price is expected to decline at a rate of 5% per semi-annual due to obsolescence, estimate its selling price after
2.5 years Ans 236.20
A house and a lot can be acquired a down payment of P 500000 and a yearly payment of// 808305
A machine costing… determine the total depreciation using the constant percentage or declining balance method. 679454.27
A machine has an initial cost… What is the book value after 5 years using straight line depreciation?30000
A machine has been purchased and is to be paid in an annual of series of payment at the end of each a. $4212
A machine shop installs new latte machine that costs… What is the payback period?4 years
A man borrowed P 2000 from the bank and promise to pay… What was the rate of discount and the rate of interest that the bank collected in advance? 4.17%
A man borrowed… from lending institution… how much should he deposit to a bank monthly in order to discharge his depth 10 years hence? 5,093.06
A man expects to receive P 25000 in 8 years. How much is that money worth now considering interest at 8% compounded quarterly? 13,265.63
A man sells eggs at 75 pesos per dozen at 20% profit. If he sells the egg at the same price after the cost of eggs increases by 12.5%, how much is his new gain
in percent? /// 10
A manufacturer wishes to earn a profit of $2000 from the sales of his products. The cost to produce one unit of product is $26 and the fixed cost is worth
$18000. What should be the sales if the product is sold at $47. Ans 953
A manufacturer wishes to earn a profit of $2000 from the sales of his products. The cost to produce one unit of product is $26 and the fixed cost is worth
$18000. What should be the sales if the product is sold at $47. /// 953
A manufacturing firm wishes to give each 80 employee … 12615.80
A merchant puts his… how much will he collect at the end of the 6th year? 4626
A parent of the day the child is born wishes to determine what lumpsum would have to be paid into an account… 30941
A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent salaries,
and wages. FIXED COST
A piece of machinery can be bought… What is the annual interest rate for the time payments? 4.61
A shoe manufacturer produces a pair of shoes at a labor cost of Php8.50 and materials cost of a. 750 pairs
A small company wants to deposit a single amount of money now so that it will have enough to b. $31,050
A small company wants to have enough money saved to purchase a new $200,000 warehouse in five
A small machine has an initial cost of P 20000, a salvage value of P 2000 and a life of 10 years. Determine the annual depreciation. 1800
A supermarket charges 2.75% per month on credit purchases. What is the equivalent nominal annual interest rate? Ans 33%
A supermarket charges 2.75% per month on credit purchases. What is the equivalent nominal annual interest rate? 0.36
A young engineer borrowed… What does he have to pay at the end of the 5th year in order to pay off his loan?6922.93
a. $27,960
ABC corporation makes it a policy that for every new equipment purchased,… Determine the length of service life if the depreciation used is the SYD method.
9
An amount of P1000 becomes P1608.44 after 4 years compounded bimonthly. Find the nominal c. $10,795
An artificial expense that spreads the purchase price of an asset or another property over a number of years. – Depreciation
An asset is purchased for P 9000… Find the book value during the first year if the sum of the year digit (SYD) depreciation is used. 7545
An asset is purchased for P500000. The salvage value in 25 years /// 48,000
An engine is expected to have a maintenance cost of… what will be the approximate effective annual maintenance cost?3011
An engineer borrowed Php100, 000 from a lending company at a simple interest rate of 20%. However, the amount of interest was immediately deducted
from the loan amount. Ans 25%
An equipment costs Php 10,000.00 with a scrap value of Php 500.00 at the end of its life of 10 years. c. Php 950.00
An instructor plans to retire in exactly one year … what is the amount he would need to deposit now?//242806
An item can be manufactured by hand for $5. Alternatively, the item can be produced by a machine at a fixed annual equivalent cost of $4,000 plus a variable
cost of $1 per item. . $ 1000.00
Aside from the straight line method of depreciation, what other method assumes a uniform annual depreciation? SINKING FUND METHOD
At an interest rate of 10% compounded annually, how much will a deposit of P 1500 be in 15 years?6265.87
Brutus purchased an electric violin that cost 10,000php. It is expected to have a value of 3000php at // . 1750.00 php
By the condition of a will… When will the girl receive the money… 11.57
Calculate the present worth of Php 500 annuity starting at the end of the third year and continuing to the end of the fourth year at 10% per annum. Ans717.16
Chinese Bank offers 9.5% account that yields 9.84% annually. How often is the interest to be compounded? /// quarterly
Compute for the exact simple interest on Php 87, 000 investment from February 6 to November 23, 2004 at 12% interest rate. Ans 8272.13 / (Searched Ans:
8300.66)
Compute for the exact simple interest on Php 87, 000 investment from February 6 to November 23, 2004 at 12% interest rate. 8300.66
Compute the effective annual interest rate equivalent to 5% nominal annual rate interest compounded continuously. a. 5.1271 %
Fifteen years ago P1,000.00 was deposited in a bank account and today it is worth P2,370.00. The b. 5.6%
Find the present worth of a future payment of P 300000 to be made in 5 years with an interest rate of 8% per annum. 204,174.96
How long will it take money to double itself if invested at 5% compounded annually?14.2 or 14
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
91.
92.
93.
94.
95.
96.
97.
98.
99.
100.
101.
102.
103.
104.
105.
106.
107.
108.
109.
110.
111.
112.
How many years will P 100000 earned a compound interest of P 50000 if the interest rate is 9% compounded quarterly? 4.55
How much money must be invested today in order to withdraw P 2000 annually for 10 years if the interest rate is 9%? 12835.32
If an amount of $666 is deposited at the beginning of year one, what is the future worth 6 years a. $1179.86
If James Garin deposited P1000 in a savings account that pays 6% annual interest and all the interest d. 1191
If money will be triple itself after 8 years, determine the nominal interest rate. a. 14.72%
If the money invested will earned P200,000 after 10 years at 16% compounded annually, what is the P58,626.36
If the nominal interest rate is 3%, how much is P 5000 worth in 10 years in continuously compounded account? 6750
In a certain bank, Php 1,000.00 became Php 30,000 in 30 years. Calculate the interest rate d. 12 %
In counting the number of days when computing simple interest, the first day is EXCLUDED and the last day is INCLUDED
Income from a certain operation is expected to be zero in years one through five, after which it will be c. $310,450
is also known as potential service life at which a property is physically able to perform functions as originally designed. PHYSICAL LIFE or ECONOMIC LIFE
It is a method of computing depreciation in which the annual charge is a fixed percentage of the depreciated book value at the beginning of the year to which
the depreciation applies. Ans. Declining Balance Method
It is a method of depreciation where a fixed sum of money is regularly deposited at compound interest in a real or imaginary fund in order to accumulate an
amount equal to the total depreciation of an asset at the end of the asset’s estimated life. Ans: Sinking Fund Method (Searched Ans: Sinking Fund Method or
Straight Line Method)
It is a method of depreciation whereby the amount to recover is spread uniformly over the estimated life of the asset in terms of the periods or units of output
Ans. Straight Line Method (Searched Ans: Declining Balance Method)
It is a method of depreciation whereby the amount to recover is spread uniformly over the estimated life of the asset in terms of the periods or units of
output. DECLINING BALANCE METHOD
It is a series of uniform accounts over an infinite period of time. Ans perpetuity
It is a series of uniform accounts over an infinite period of time. PERPETUITY
It is a type of annuity where the first payment is made after several periods and not at the end of the first period. DEFFERED ANNUITY
It is a type of annuity where the first payment is made after several periods and not at the end of the first period. -Deferred Annuity
It is a type of annuity where the payments are made at the end of each payment period starting from the first period. -Ordinary Annuity (Searched Ans:
Deferred Annuity)
It is a type of annuity where the payments are made at the end of each payment period starting from the first period. DEFFERED ANNUITY
It is an application of comprehensive techniques to predict the feasibility or economic outcome of a proposed engineering project. -Engineering Economy
It is an application of comprehensive techniques to predict the feasibility or economic outcome of a proposed engineering project. ENGINEERING ECONOMY
It is an interest rate which specifies the actual rate of interest in one year. Effective rate (Searched Ans: Nominal rate)
It is defined as the future value minus the present value. Ans interest
It is the amount which a willing buyer will pay to a willing seller for the property where each has equal advantage and is under no compulsion to buy or sell. Market Value
It is the amount which a willing buyer will pay to a willing seller for the property where each has equal advantage and is under no compulsion to buy or sell.
MARKET VALUE
It is the cost of things that are neither labor nor material – Expenses
It is the cost of things that are neither labor nor material. EXPENSES
It is the cost of things that are neither labor nor material. LABOR COST
It is the current amount of money or its equivalent paid to acquire goods and services. PRICE
It is the current amount of money or its equivalent paid to acquire goods and services. VALUE
It is the estimated value at the end of the useful life Ans Salvage value
It is the estimated value at the end of the useful life. SALVAGE VALUE
It is the length of time which the property may be operated at a profit. ECONOMIC LIFE
It is the period, usually in numbers years, needed to completely depreciate an asset. PAYBACK PERIOD
It is the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal. INTEREST RATE
It is the simplest form of a business organization. a. Sole Proprietorship
It is the value which is usually determined by a disinterested third party in order to establish a price that is fair to both the seller and the buyer. FAIR VALUE
It is the worth of property which is equal to the original cost less depreciation. BOOK VALUE
It refers to the income needed to cover a manufacturer’s total expenses in a given period of time Break-even point
It refers to the income needed to cover a manufacturer’s total expenses in a given period of time. BREAK EVEN POINT
John borrowed P 50000 from the bank at 25% compounded semi-annually. What is the corresponding effective rate of interest? 25.56%
Mandarin Bank advertises 9.5% accounts that yield 9.84% annually. Find how often is the interest compounded? 4
Miss Reyes deposited 2000, 3000 and 4500, all in pesos, at the end of the 2nd, 3rd, and 4th year, respectively in a savings account that earns 5% per annum.
How much is the account at the end of the 4th year? Ans 9855
Money borrowed today is to be paid in 6 equal payments… How much was initially borrowed if quarterly payment is P 2000. // 10834.38
Mr. Cruz plans to deposit for the education of his 5 year old son… The amount that will be available in two years is: 13,486.73
MR. Paul George is planning to buy a Ferrari and wants to know how much will it cost him if he is going to buy and use a Ferrari for the next 5 years? A
A.50,194,156
Mr. Santos deposits Php 1200 now, Php 800 two years from now and Php 1000 five years from now. If the bank interest on savings is 5%, how much money will
he receive ten years from now? 4412.92
Mr. Santos deposits Php 1200 now, Php 800 two years from now and Php 1000 five years from now. If the bank interest on savings is 5%, how much money will
he receive ten years from now? 4412.92
Mr. Subito borrowed Php 4605 from a bank, which he will repay Php 5000 at the end of 10 months. In the 10-month period, there are 6 months having 31
days. Calculate the simple interest rate. 10.23%
Niki shoe manufacturer produces a pair of signature shoes where the endorser’s royalty fee is Php 1100 per pair of shoes sold. The labor cost to produce a pair
of shoes is Php 850, and material cost is Php 950 per pair. Fixed charges on the business is Php 16.5 million per quarter and variable costs are Php 450 a pair.
2444
One thousand pesos is borrowed for one year at an interest rate of 1% per month. If the same amount is borrowed for the same period at an interest rate of
12% per year, how much is the savings in interest charges? /// 7 or 6.83
113. Period over which an asset (machine, property, computer system, etc.) is expected to be usable, with normal repairs and maintenance, for the purpose it was
acquired, rented, or leased. Ans Economic life
114. Period over which an asset (machine, property, computer system, etc.) is expected to be usable, with normal repairs and maintenance, for the purpose it was
acquired, rented, or leased ECONOMIC LIFE
115. Sunk costs include ___. Ans. All in the list
116. The alternatives which are standalone solutions for engineering economy problems involve ____. - All in the list
117. The amount deducted immediately from a loan, which is supposed to be the payment in some future time for the use of the said loan, is called
AMORTIZATION or DISCOUNT
118. The amount transferred to depreciation is a fixed ratio of the undepreciated balance for the item. - Declining Balance Depreciation (no searched ans)
119. The annual maintenance cost of a machine… find the number of units to be forged to breakeven. 886
120. The construction cost of a permanent park is $600,000. Annual maintenance and operation costs are c. $18,000,000
121. The corporation purchased a machine for P 1 million. Freight and installation charges amounted to… using the sum of the years digit method. 100,711.11
122. The effective rate of 14% compounded semi-annually is: 14.49%
123. The efficiency of an investment is known as ___. RATE OF RETURN
124. The first cost of any property includes ___. ALL IN THE LIST
125. The Great Engineer Carvajal is planning to invest his money to a bank named Philippine Isla bank (PIB). The bank offered him a 2% interest annually. If Engineer
Carvajal puts P 500,000 today, A.552,040
126. The life wherein a property generates more income than the costs necessary for its operation and maintenance and produces desirable level of profit, is
known as _____. BOOK VALUE or ECONOMIC LIFE
127. The machine has an initial cost of… Find the book value after 5 years using straight line depreciation 30,000
128. The original cost of a certain piece of equipment is… by straight line formula. 8784.36
129. The recorded current value of an asset is known as ___. - Book Value
130. The reduction in the money of a capital asset is called _____. b. Capital loss
131. The reduction in the money value of a capital asset is called ___. CAPITAL LOSS
132. The reduction of the value of an asset due to constant use and passage of time. c. Depreciation
133. The sum of P 1000 is invested now … what will be the withdrawal amount at the end of the 16th year? 705.42
134. The sum of P 1000 is invested now … what will be the withdrawal amount at the end of the 16th year?705.42
135. The true value of interest rate computed by equations for compound interest for a one-year period is known as___. Ans- Effective interest
136. This refers to the length of time of property ownership by a specific person or entity from cradle to grave. OWNERSHIP LIFE
137. This refers to the length of time of property ownership by a specific person or entity from cradle to grave. Ans Ownership life
138. What do you call the present worth of the property which is equal to the original cost less depreciation? - Book Value
139. What is sometimes called second hand value? Ans Salvage value
140. What is sometimes called second hand value? SALVAGE VALUE
141. What is the accumulated amount of five year annuity paying P 6000 at the end of each year, with interest at 15% compounded annually? 40454.29
142. What is the artificial expense that spreads the purchase price of an asset or another property over a number of years? DEPRECIATION
143. What is the book value after 8 years for a machine at an initial investment of Php 8000 and salvage value of Php 500 after its estimated life of 10 years? ///
2000
144. What is the length of time, usually in years, for cumulative net annual profit equal to investment? PAYBACK PERIOD
145. What is the nominal rate compounded monthly which is equivalent 10% compounded semi-annually? 9.8%
146. What is the present worth of a 3 years annuity paying P 3000 at the end of each year, with interest at 8% compounded annually 7,731.29
147. What rate of interest compounded annually is equivalent to the rate of interest of 8% compounded quarterly? 8.24%
148. What will be the future worth of money after 12 months, if the sum of P 25000 is invested today at simple interest rate of 1% per year?28000
149. When free competition exists, the price of a product will be that value where supply is equal to the demand.” d. Law of Supply and Demand
150. Which of the following depreciation methods cannot have a salvage value of zero? DECLINING BALANCE METHOD
151. Which of the following depreciation methods cannot have a salvage value of zero? c. Declining Balance Method
152. Which of the following is common to both the fixed and operating cost of an enterprise? INTEREST
153. Which of the following is not a fixed cost? Rent
154. Which of the following is not a variable cost? INCOME TAXES
155. Which of the following is not a variable cost? Insurance cost (Searched Ans: Income taxes).
156. XYZ corporation manufactures bookcases that it sells for P 65 each. It costs XYZ P 35000 per year to operate its plant. This sum includes rent, depreciation
charges on equipment, and salary/ 2334
157. You invest $10,000 into a mutual fund. If the fund averages a 70% annual return, what is the worth b. $406,423,140
158. Your perfectly reliable friend, James Garin, asks for a loan and promises to pay back P150 two year d. 129