COLLEGE OF ENGINEERING

3rd Tri, SY 2021-2022

ENGG522 – ENGINEERING ECONOMY
Assignment 1
Total Points: 30

Student ID Student Name

Course Code Course Title Section

1-4 (5 points each)

DIRECTIONS: SOLVE THE FOLLOWING PROBLEMS AND DRAW THE CASH FLOW DIAGRAM FOR
EACH OF THE GIVEN PROBLEM

a) If you had BD 4,500 now and invested at 13% interest compounded annually, how much would it be
worth in eight years?

b) Twenty years from now, Angelo plans to buy a new motorbike worth BD10,000. The current rate of
interest is 8% yearly. Assuming the interest is compounded annually, how much does Angelo need to
deposit now?

c) Mohamed wishes to deposit BD10,000 to a bank that will guarantee BD15,938.48 after eight (8) years.
What is the rate of compounded interest that she is expected to receive from the bank?

d) Rashed wants to make his investment triple its value at the end of twelve (12) years’ time. What rate of
interest, compounded yearly does he expects?

5-6 (5 points each)

EVALUATE THE REQUIRED VALUE BASED ON THE GIVEN STANDARD NOTATION

a) BD20,500 (A/P, 9%, 7)

b) BD590 (F/A, 5%, 10)

*********************************END OF QUESTIONS************************************
Rubrics scoring:

For 5 marks
5 marks: correct answer
4-3 marks: maximum correct answer
2-1marks: minimum correct answer
0 mark: No answer or wrong answer.

Prepared by: Reviewed/Checked by: Verified by: Approved by:

Engr. Zahra Merza Dr. Essam Alnatsheh Dr. Beda T. Aleta

Subject Coordinator Department Head Dr. Noaman M. Noaman
Associate Dean College Dean
Date : June 1,2022 Date : June 1,2022 Date : June 1,2022 Date : June 1,2022
 a) Given P=BD 4500 , r=0.13 and t=8 year

A ¿

b) Given A=BD10,000 and r =0.08 , t=20 year

P ¿ A / ( 1+ r n )
¿ ¿

c) Here given P=BD 10,000 and A=BD 15,938.48 and t=8 year

A ¿

D) Let take p=x , and A=3 x and t=12

A ¿

Prepared by: Reviewed/Checked by: Verified by: Approved by:

Engr. Zahra Merza Dr. Essam Alnatsheh Dr. Beda T. Aleta

Subject Coordinator Department Head Dr. Noaman M. Noaman
Associate Dean College Dean
Date : June 1,2022 Date : June 1,2022 Date : June 1,2022 Date : June 1,2022