© @ Visayas State University College of Engineering Department of Civil Engineering VSU, Baybay Cty 6521, Leyte, Philippines Sel 182~ Engineering Economy G ne I Name: 26660 Wwe et Student Number 11 Date_feb #4 2007 Solve the folowing problems and encicle the letter of the corectarswer. Show your solutions ona separate clean sheet of paper. 1 Adebt of x pesos, with interest rate of 7% compounded annually wil be retited atthe eva at 6 years through the Fond econ of Sepest i the sinking fund invested at 6% compounded semi-annually. The depest in the sining fund every end of six months is P23,962.68, What is ealncte? 300,000 'b,P2S0,200 350,000, «4.400.000 2 A man paid 10% down payment of 200,000 for a house and lot and agreed to pay the balance on monthly installments for 60 months at an nterest rate of 15% compounded monthly, Determine the required monthly payment. (4282.00 @p2x2200 «5847700 4.75 248.00 3+ The present value of an ennuity of R pesos payable annually fr 8 years, with the fist payment atthe end of 10 Yeats, is P187,481.25. Find the value of Rif money is worth 5% “sn Seago Cn pee 4 Amn nheteds er endow of P0000 fet @ single lump sum payment at the end of 4 year ‘compounded quarterly? ry end of 3 months for 10 years. However, he may choose to . How much is this lump sum if the cost of money is 14% P3502, » P3.202,962 ©pa02939 4.P3602.¢31 gs ing propery is offered forsale for PS.7M. On the basis of estimates production, an annual return of P800,000 's foreseen for a period of 10 years. After 10 years, the property will be worthless. What annual rate of return fs In iospect? (er beak 50% 452% 6. Mr. Jones borrowed P1$0,000 two years ago. The terms of the loan are 10% interest for 10 years wit: uniform ents. He jst made his second nual payment. How much principal does he sil owe? Gyri3025 20 (134,367.30 ©. P132,456.20 .7129,456.78 7. In $ years, P18,000 will be needed :0 pay for a bulding renovation. In order to generate tis sum, a sinking fund consisting of three annual payment: is established now. For tax purposes, no further payments will three years. What payment is neces. ary if money is worth 15% per annum? (37324585 9. 7378)38 @rasi9s3 4.737856 8, If money is worth 10% yearly, compounded quarterly, what monthly savings is required monthly in order to have 200,000 a the end of 10 years? pas b. P878. 18 ©, PR66.99 @=. 28 3. You need P40,000 per year for 4 y2ars to go to college. Your father invested P50,000 in a 7% account for your ‘ecueation when you were born. if y>u withdraw the P40,000 at the end of your 178, 18%, 19%, and 20” years, how ‘mach money will be left inthe account atthe end of your 2 year? 2. P26,000 @yr00 18,000 4,P12,000 10. AconetfGaught cont mest 120.000 pin cash The ier maya be puch ntstnent Vr soa ad with yn mony wore te anon exchamal pees faker ee nee begining teach or crransay, nemsa00 range .omsssoo be made after st of PAO,000 has a reve nue of X pesos atthe end of the first and second year. Given a discount rate of 4 annually, find X sc that the net present worth ofthe investment is zero. .P27.719.78, frssonss 21,879.99 Acquired at + down payment of P500,000 anda yearly payment of P100,000 atthe end of £10 years, starting atthe end ofS years from the date of purchase If money is worth 14% satis the ccsh price ofthe property? *-paos00.00 —@7808,836.00 4. P0,502.00—_— foe vent , Woe sexy ¥ gin wil We wind ol He ad aw year Hitt We occuentakon of deport in Me, beg ee . 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Ay money vc wort wh yearly , compounder gparkerly what woatbly caunge Se reqpirta mottly ie uder to Were f200,00 oth He Ch om, & gore? ob yt a Cis why Gi nv W uy ae sy = VAL Vt G25 410? L= o&tec ‘L 0) * Cs ovine {M24 00,90 + L banec ‘ : fas 74 & flow wed Pao 00 er yor Gr A Year CONEGE Jour cote ‘we cet Th Guourl por your tu coh when yoy were born by You win drow Ae, Pao. 00 ob ee 4 dour neh iat Ye Yeore jw much aH mom ON Mee a Ne Wd your coped te thm Gert) =83 0 % te loot | Fee teow (nt) (et) v1 Ye fos 4 =V wads Su Naoorq cur i, DA wero Chor Rover coig COA WGA Te ww Ray ako be purchara by wfoline\ to Ve god waka © ytore ME muery 16 Norte Cb | Me amour eh tach ovdual gaynerty «all Poynees —ae made A Me Keginng 4 ek utr , 15 Te 0,00 00 ws Lesh veo, (vel Lough a cnacte mixer cf Bide mew 4 Ro,69 boro mime + ree ch the end the Gk mA und Sor. Govee 9 diccowl tae ag 'h um 4 red ammaly 00d gm hah he wh peceat vurth 4 Swerhwerk ae, toa Ae ats yt ee ee Gal 2024 wate ROK Wout ond VA Cov be acqund aa dows goywtat 4 Proo.cco ord 3 yearly Townes of Fico.tco che ad 4 tach Hor for 9 prod aq 10 wears charting ov Me a og tors fom Me dole Ber chace meaty ve worth A compgundth omually ukow te coh Tae og he, Property? saeetsanss £4 500, Paeten a oe ATM DY e: Gog do 6.44ESci 182 Engineering Economy Quiz No.1 student Number:_[)=-02M2 Date: fe 42017 ynswer. Show your solutions on a separate clean sheet of paper. owen fof the corres owing problems and encircle the let a -ompounded interest on P3,000.00 in 2 is P500.00, then the compounded interest on P3000.00 in 4 years is? a. P9S6.00. (B)P2,083.00 ¢. P1,125.00 d. P1,526.00 42 unlit oecoecnn rate for an interest rate of 12% compounded continuously? eine vzsoe en @unm 2» sin cgi 120,000.00 in a bank who offers 8X Interest compounded quarterly Ifthe intrest Is subject to @ 24% tay, ‘ow much wll he receive afte S years? a. P178,313.69 b, P153,349.77 (@\P 170,149.77 d. P175,343.77 a Nowa «il take for an investment to fivefold its amount f money is worth 149% compounded semiannually? ait (2 ci 14 left for another eight years. If the effective annual interest rate is 5%, 16" year? (2706.00 b.P774.00 . P500.00 d.P799.00 JB spire Isinvested now and left for eight years, at which time the principal is withdrawn. The interest that has accrued ‘what will be the withdrawal amount at the end of the 46 Crmine the accumulated amount using exact simple interest on P1000 for the period from January 20, 1990 to November 28 of the same year at 15% interest rat ca pit28 . P2400, b. P1130 P1282 1. ttis the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automaticaly Geducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with 2 bank and the PB0,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given 2 ‘heat of P6B,800. Since you have to pay the amount of PBO,000 one year after, what the will be the effective interest rate? a. 15.90% b. 16.30% @1628% d. 16.20% 4. 9200,550 wos deposted on an, 31988 a an ineest at of 28% compounded semiannual. How much would he sum be on fan 12937 apaaia70 b.psaya70 e.p401370 @psas.s70 4 Te lowing schedule of funds aval form akg fe ‘caren yer (0 0.000 ned ‘o.000 mee $o.000 a 20,000 ave to be purchased as a replacement for an old equipment. [At the end of the fourth year, equipment costing 250,000 wil h how much money will be needed to supplement the sinking ‘Money is valued at 20% by the company. At the time of purchase, fund? 2. °§12,000 .P12,000 @p20.000 4. P9,000 3, 0 12% compounded semi-annually to x% compounded monthly 2.11.83% Ba 7% © 11.23% 4.1142% 3 35-ent abvertsing 98% counts at yd 980% snr. How often the tres compounded? a. daily b, monthly. ¢. bimonthly @auarterty 3 2 S000 is deposited ata rate of 11.25% compounded monthly, determine the compounded interest after 7 years and 9 ‘months 2. P660 592 b. P670, 258 ©. P680,686 (A) 690,849