ENGINEERIG ECONOMY Set A (with answers/solutions)

Direction: Choose the correct answer.

10.If the loan was for 15 months at 16.8% interest a year and the repayment on a loan was
P12,100.00, how much was the principal?
a) P8,500.00 b) P9,500.00 c) P10,000.00 d) P10,500.00

11.Determine the accumulated value of P2,000.00 in 5 years it is invested at 11%

compounded quarterly.
a) P3,440.00 b) P3,404.00 c) P3,044.00 d) P4,304.00

12.If a machine is purchased on installment and the buyer makes an P80,000.00 down
payment and owes a balance of P150,000 in 2 years. Determine the machine cash value if
money is worth 14% compounded quarterly.
a) P199,312.00 b) P183,912.00 c) P193,912.00 d)
P139,912.00

13.Celestino 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 6 th year. Find how much he has to pay on the 6 th
year if money is worth 14% compounded semi-annually.
a) P1,449.12 b) P 1,559.12 c) P1,339.12 d) P1,669.12