ENGINEERING ECONMICS

Midterm Examination

Instructions:
1. Solve the following problems stated below. Use your calculator.
2. Get the known and unknown quantities. Show your solutions for each problem.
(No Solution, No Score).
3. Make you solutions clean and clear.
4. Use bond papers.

Problem 1
What is the present amount of P50,000 which is due at the end of six months if a
man borrow money from the lending company at 12.50% simple interest ?

Problem 2
How many years will it take for P50,000 which is invested at 8% interest
compounded semi-annually to accumulate to P90,000 ? Draw the CFD.

Problem 3
In Problem 2, determine the Effective Rate of interest.

Problem 4
You are applied a package deal car loan with a present amount of P578,335.
Determine the accumulated amount after or at the end of 5 years if you are required
to pay P12,251 monthly. Draw the CFD.

Problem 5
In Problem 4, if compounded monthly, determine the nominal rate of interest.

Problem 6
If money borrowed today is to be paid in 6 equal payments at the end of six years
and the rate of interest is 12% compounded semi-annually, determine the amount of
borrowed money if yearly payment is P2,000. Draw the CFD.