Seatwork No.

1
ESS 5
Engineering Economy

Problem Solving.
1) What is the annual rate of interest if ₱265 is earned in four months on an investment of
₱15,000?
2) A loan of ₱2,000 is made for a period of 13months from January 1 to January 31 the following
year, at a simple interest rate of 20%. What future amount is due at the end of the loan period?
3) If you borrow money from your friend with simple interest of 12%, find the present worth of
₱20,000 which is due at the end of nine months.
4) Determine the exact simple interest on ₱5,000 for the period from January 15 to November 28,
1992 if the rate of interest is 22%.
5) A man wishes his son to receive ₱200,000 ten years from now. What amount should he invest if
it will earn interest of 10% compounded annually during the first 5 years and 12% compounded
quarterly during the next 5 years?
6) By the conditions of a will, the sum of ₱25,000 is left to a girl to be held in trust by her guardian
until it amounts to ₱45,000. When will the girl receive the money if the fund is invested at 8%
compounded quarterly?
7) At certain interest rate compounded semiannually, ₱5,000 will amount to ₱20,000 after 10
years. What is the amount at the end of 15 years?

Handwritten
Show your complete solution with diagram
Box your final answer with proper unit
Submission date: ON or BEFORE 11:59 of October 18, 2020