ENGINEERING ECONOMICS

MT-Problem Set

Instructions:
1. Copy and answer the following problems.
2. Use formatted bond paper
3. One formatted bond paper is to one problem.
4. Write the problem on the upper thirds of the formatted bond paper
5. Use the lower two-thirds for the solution. Box your final answer.
6. Compile your problem set on a purple clear morocco folder. And provide a title page
(attached in this document)

Criteria:

CRITERIA: Excellent Satisfactory Developing Not Satisfactory

Writing is
Writings are Writings appears
exceptionally Writing is neat
neatly drawn messy and
well designed, and relatively
Neatness but appears thrown together
neat and readable
quite plain in a hurry
readable
30 20 15 5
Some solutions
The solutions The solutions
are unorganized Solutions are
are organized are mostly
and/or attached very
Presentation and makes organized and
in a sloppy unorganized
sense makes sense
manner
20 15 10 5
Information
Just enough Information
given was more Too little
information was does not
Content than that what information
expected support idea
was expected
50 40 25 10
PROBLEM SET

1. An investment of Php 200,00 for 36 days earned Php 3,588 after deducting 20% withholding tax.
Find the annual rate of simple interest.
2. A certain commodity is payable in 90 days but if paid in 15 days there will be 10% DISCOUNT. Find
the annual rate of interest.
3. How long (in years) will it take money to double if it earns 4% per annum compounded annually?
4. Compute the interest for an amount of Php 200,000 for a period of 8 years;
a. if it was made a simple interest rate of 16%;
b. if it was made at 16% compounded bi-monthly; and
c. if it was made at 16% compounded continuously.
5. A car costing Php 1 Million was bought at a down payment of Php 200,000. Php 150,000 is paid
after 2 years and the remaining balance is paid after 5 years. How much was the payment after 5
years if the interest rate is 12% compounded annually?
6. A house and lot costing Php 2 Million was bought at a down payment of Php 500,000. He paid Php
1 Million after 1 year and the remaining balance after 3 years. How much was the payment after
3 years if the interest rate is 24% compounded semi-annually?
7. A man borrowed Php 120,000 and promised to pay annually for 5 years. The payment starts at
“x” pesos. The man intends to increase his payment by Php 5000 at the end of each successive
year. If the interest rate is 8% compounded annually, how much will the first payment be?
8. Find the effective rate of 8% compounded continuously.
9. Compute the effective rate of the following interest rates;
a. 12.30% compounded annually
b. 11.95% compounded semi annually
c. 11.75% compounded quarterly
d. 11.68% compounded monthly
10. Find the equivalent of 6% compounded semi-annually in a rate compounded quarterly.
11. A man paid 10% down payment of Php 200,000 and agreed to pay the balance of monthly
installment for 5 years at an interest rate of 15% compounded monthly. What was the monthly
installment?
12. A man deposited Php 100,000 annually for 10 years at an interest rate of 8% compounded
annually. How much will his money be after another 10 years?
13. The purchase of a new car requires Php 100,000 down payment and the balance to be paid Php
300,000 after 2 years and Php 600,000 after five years. The rate of interest is 18% compounded
monthly.
a. Find the present worth of the car.
b. Find the lump sum if the car is paid after 5 years.
c. With the down payment of Php 100,000, find the monthly amortization for 5 years.
14. The maintenance cost of newly acquired equipment is Php 40,000 per years for the first 5 years
and Php 60,000 per year for the next 5 years and the cost of overhaul at the end of 5th and 8th year
is Php 140,000. Find the equivalent uniform annual cost (EUAC) if the money is worth 6%
compounded annually.
15. Find the present value of perpetuity of Php 15,000 payable semi-annually if the money is worth
8% compounded quarterly.
 ENGR. DANTE L. MENDOZA, JR.
DATE SUBMITTED:
INSTRUCTOR:
MIDTERMS PROBLEM SET
ENGGECON: ENGINEERING ECONOMICS
SHORT TERM 2023

MT-PROBLEM SET
NEATNESS 30 20 15 5

DATE STARTED:
PRESENTATION 20 15 10 5

ACTIVITY TITLE:
CONTENT 50 40 25 10

STUDENT NAME:

ID NUMBER:

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