Government Engineering College, Haveri-581110 2 G O M E

Dept. of Mechanical Engineering

Course: Management and Economics(18ME51)
I Internal Assessment Test
Semester: 5 Date: 25/11/2021 Duration(H:M): 1:00 Max.Marks:30
NOTE: Answer three questions choosing one from each.

RBT
Q.No QUESTIONS MARKS CO PO
LEVEL

a). Briefly explain the problem-solving process with a diagram.

b). Explain the law of demand and the law of supply.
OR
A machine has a net cost of amount of Rs 2200 per year is to be
paid into an account each of the next five years. Using nominal 1,2,
1. interest rate of 10%, determine the total amount the account will 5+5 L2,L3 4,5
3,4
have at the end of 8 years, under the following conditions.
(i) Deposit made at the end of each year with interest compound
rate monthly.
(ii) Deposit made at the end of each year with interest compound
rate quarterly.

Derive an equation for equal payment series compound amount

factor.
OR 1,2,
2. A person working in a organization has a 10years of service before 10 L3,L6 4,5
3,4
he retires. He now plans to deposit Rs 25,000 at the end of first
year and there after an annual increase of Rs.500 for the
remaining nine years. If he can expect a return of 10%. Find the
future amount at the end of 10th year.
A person who is now 35 years old is planning for his retired life. He
plans to invest an equal sum of Rs. 20,000 at the end of every year
for the next 25 years starting from the end of the next year. The
bank gives 12% interest rate, compounded annually. Find the
maturity value of his account when he is 60 years old.
OR
A company wants to set up a reserve which will help the company
L3,L4, 1,2,
to have an annual equivalent amount of Rs. 20,00,000 for the next 10 4,5
3
30 years towards its employee’s welfare measures. The reserve is L6 3,4
assumed to grow at the rate of 16% annually. Find the single-
payment that must be made now as the reserve amount.