St.

Anthony’s College
San Angel, San Jose Antique

Engineering and Technology Department

Lesson Plan in ESECON

(Engineering Economy)

Week No. 4
Prepared by: ENGR. ESMAR A. PIDO

Offline/Online Instruction

I. COURSE LEARNING OUTCOME

Solve problems involving interest and the time value of money;

INTENDED LEARNING OUTCOME

Solve problems on interest and the time value of money.

Solve problems using cash flow diagram.

II. CONTENT: Topic/Subject Matter:

2. Money-Time Relationships and Equivalence

2.1. Interest and the time value of money
Simple Interest
Compound Interest
Continuously Compounded Interest
Cash flow Diagramming
Discount

Reference/Material:

Hipolito B. Sta. Maria, Engineering Economy 3rd Edition

Jaime R. Tiong, Engineering Economy, 2002
Leland Blank and Anthony Tarquin, Engineering Economy 6th Edition, 2005
L.T Blank and A.J Tarquin, Basics of Engineering Economy, 2008
III. ACTIVITIES:

1. Presentation of handouts and Video viewing.

- Money-Time Relationships and Equivalence
- Interest and the time value of money
Simple Interest
Compound Interest
Continuously Compounded Interest
Cash flow Diagramming
Discount

2. Evaluation of the example problems.

- Open the video files (Week 4)

3. Independent Learning/Home Study:

Assignment on solving problems involving interest and time value of money.

- Open the file Assignment Engineering Economy (Week 4)

- Solve the following problems.