SEATWORK #1 ( Engineering Economy )

1) A certain amount of money once invested on a trust fund that earns a simple rate of interest
becomes P 184, 172. 92 after seven months and twelve days and becomes P 193, 759. 03 after
one year, three months and four days. Approximately, find the amount invested and the rate of
simple interest.

2) An unknown amount of money was deposited through an account by a student on a bank that
earns a 10% simple interest last July 4, 2020. It is expected that this amount earns an interest of
P 1, 472. 68 this coming October 10, 2020. This student wants to add money on his account by
depositing an amount of P 37, 500.00 this coming December 16, 2020. By May 5, 2021, this
student needs an amount of P 100, 000.00 for his personal trip. Would the amount on his
account be enough for his needs? If not, how much more is needed?

3) If you want to invest your money, which is better invest it on a bank that earns 14.25%
compounded monthly or in a trust fund that earns 14.5% compounded semi-annually?

4) A certain property was offered for sale on an instalment basis wherein the buyer needs to pay
an amount of P250,000.00 as down payment. Balance be paid in four different amounts within a
period of two years. First payment amounting to P 175,000.00 happens two months after the
property was purchased. The second payment is P 100,000.00 more than the first payment and
happens seven months after the first payment. Third payment is P 75,000.00 lesser than the
second payment and happens six months after the second payment. The last payment happens
two years after the purchased amounting to P 210,000.00. If money is worth 14% compounded
quarterly, what was the cash price of the said property?

5) A P1.5 million discounted loan which includes interest was approved by a bank and needs to be
paid in five end of a year equal payments. If the rate of discount is 8%, find:

a) the equal end of a year payments.

b) the actual amount of money received by the debtor.
c) the single amount to be paid by the debtor if he wishes to settle all of his debt on this bank
after three years of payments.