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ESci131n
Engineering Economy
Assignment 6
Coverage: Discount and Inflation
Deadline: 6pm, Friday, 07 May 2021

Class Number 12
Class Schedule 3-4:30 MW

Solve the following problems. Present a complete and comprehensive solution following
the traditional format (given, required and solution) using the required units.
Solutions/final answers not using the correct units will not earn points. Truncated or
“short-cut” solutions will not be accepted. Construct the correct cash flow diagram for
every problem. Round off your final answer to two (2) decimal places. Enclose your final
answer with a rectangle otherwise it will not be credited.

1. Marissa borrowed money from a local bank. She got P13,420 but promised to pay P15,000
after nine months. What is the discount rate and interest rate in this case? (3pts)
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2. A gold ring will be worth P55,000 in 2024. How much was its worth in 2019 if the annual
inflation and interest rates for the period are 6% and 8%, respectively? (3pts
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