Fernandez, Carlo Jay N.

CEE109(2160)

Let’s Check

Activity 1: Now that you review the most essential principles in engineering economy.
Let us try to check your understanding by solving the following cost problems:

1. How many years will it take for an investment to double, if the interest rate is 8%
per year, compounded annually?

2. How much money will be required four years from today to repay a 2,000 pesos
loan that is made today at 8% interest compounded annually.

3. How much money will be required four years from today to repay a 2,000 pesos
loan that is made today at 8% simple interest?
4. At what rate of interest, compounded annually will an investment triple itself in 8
years?

5. If 300 pesos is earned in three months on an investment of 12,000 pesos, what is

the annual rate of simple interest?