WORKSHEET

IN

ENG’G ECO (ENGINEERING ECONOMICS)

BY:

VALYN JEL S. ORIA

BSCE -2A

MISSION
Develop competent and morally upright professionals and generate
appropriate knowledge and technologies to meet the needs of
Quirino Province and Southern Cagayan Valley.
 MODULE 2: MONEY-TIME RELATIONSHIP AND EQUIVALENCE

NAME: VALYN JEL S. ORIA SCORE:

COURSE AND YEAR: BSCE-2A DATE: JANUARY 20, 2021

I. PROBLEM SOLVING.

1. Compute the equivalent rate of 6% compounded semi-annually to a rate compounded

quarterly?
A 2. A sum of 1,000 is invested now and left for 8 yrs, at which time the principal is
withdrawn. The interest has accrued is left for another 8 yrs. If the effective annual interest rate is 5%,
what will be the withdrawal amount at the end of 16th year?
B 3. A student plan to deposit 1,500 in the bank now and another 3,000 for the next 2yrs. If he
plans to withdraw 5,000 3 yrs after his last deposit for the purpose of buying shoes, what will be the
amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%.
B 4. How long in yrs will it take money to quadruple if it earns 7% compounded semi-
annually?
C 5. A man wishes to have 40,000 in a certain fund at the end of 8 yrs. How much should he
invest in that fund that will pay 6% compounded continuously.
A 6. A nominal interest of 3% compounded continuously is given on the account. What is the
accumulated amount of 10,000 after 10 years?
D 7. Which of these gives the lowest effective rate of interest?
B 8. An amount of 1,000 becomes 1,608.44 after 4 years compounded
bimonthly. Find the nominal interest.
B 9. A loan for 50,000 is to be paid for 3 years at the amount of 65,000. What is the effective
rate of money?
A 10.A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the
amount due plus 2000 more for 2 years at 8%. What is the lump sum due?
B 11.What annuity is required over 12years to equate with a future amount of 20,000? Assume
i=6% annually.
D 12.A factory operator bought a diesel generator set for 10,000 and agreed to pay the dealer
uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final
payment will cancel the debt for principal and interest. What is the annual payment?

MISSION
Develop competent and morally upright professionals and generate
appropriate knowledge and technologies to meet the needs of
Quirino Province and Southern Cagayan Valley.
 B 13.What is the present worth of a 3-year annuity paying 3,000 at the end of each year, with
interest at 8% compounded annually?
D 14.A man loans 187,400 from a bank with interest at 5% compounded annually. He agrees
to pay obligations by paying 8 equal annual payments, the first being at the end of 10years. Find the
annual payments.
D 15.A person buys a piece of lot for 100,000 down payment and 10 deferred semi-annual
payments of 8,000 each, staring three years from now. What is the present value of the investment if
the rate of interest is 12% compounded semi-annually?
C 16.An engineer borrowed 10,000 at 12% interest and paid 2000 per annum for the last 4
years. What does he have to pay at the end of the fifth year in order to pay off his loan?
17.A man owes 10,000 with interest at 6% payable semi-annually. What equal payments at
the beginning of each 6 months for 8 years will discharge his debt?
C 18.A man will deposit 200 with a savings bank at the beginning of each 3 months for 9 years.
If the bank pays interest at the rate of 5.5% quarterly, find the sum to his credit just after the last
deposit.
A 19.If a low cost house and lot worth 87,000 were offered at 10% down payment and 500 per
month for 25 years. What is the effective monthly interest rate on the diminishing balance?
20.A man wishes to have an amount of P2,769.84 after 5 years. He deposited P500 each year
into a savings bank that pay “r” percent per annum compounded continuously. Compute the value of
“r”.
21.A firm considering the installation of an automatic data processing unit to handle some of
its accounting operations. Machines for that purpose may JUbe for P20,000, or may be leased for
P8,000 for the 1st year and P1,000
22.The maintenance room of a room air conditioner is expected to be P2,000 at the end of the
1st year and is expected to increase by P100 each year for the following 7 years. Assuming rate of
interest is 6%, compute the equivalent uniform annual maintenance cost.
B 23.P45,000 is deposited in a savings account that pays 5%interest compounded semi-
annually. Equal annual withdrawals are to be made from the account, beginning one year from now
and continuing forever. Compute the maximum amount of the equal annual withdrawal.
A 24.A student plans to deposit P 1,500 in the bank now and another p 3,000 for the next 2
years. If he plans to withdraw P 5,000 three years from after his last deposit for the purpose of buying
shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective
annual interest rate is 10%.

MISSION
Develop competent and morally upright professionals and generate
appropriate knowledge and technologies to meet the needs of
Quirino Province and Southern Cagayan Valley.
 C 25.By the condition of a will, the sum of P 20,000 is left to a girl to be held in trust fund by her
guardian until it amounts to P 50,000. When will the girl receive the money if the fund is invested at 8 %
compounded quarterly?

MISSION
Develop competent and morally upright professionals and generate
appropriate knowledge and technologies to meet the needs of
Quirino Province and Southern Cagayan Valley.
SOLUTIONS:

MISSION
Develop competent and morally upright professionals and generate
appropriate knowledge and technologies to meet the needs of
Quirino Province and Southern Cagayan Valley.
 MISSION
Develop competent and morally upright professionals and generate
appropriate knowledge and technologies to meet the needs of
Quirino Province and Southern Cagayan Valley.