COLLEGE OF ENGINEERING AND ARCHITECTURE

ENGINEERING ECONOMICS
PRELIMS PLATE
Second Semester AY 2023-2024

C-BEENGECON: PRELIM PLATE

INSTRUCTIONS: Solve the following by following the G.U.F.S.A. (Given, Unknown, Formula, Solution,
and Answer) Format. Show your COMPLETE SOLUTION. Then BOX your Final Answer.

PROBLEM 1: You pawned your PSP for P8500 and agreed to pay the amount at the end of 9 months. The
pawnshop gave you P7500 cash after deducting the interest in advance.

a.) What was the rate of discount?

b.) What was the rate of interest?

PROBLEM 2: Steve borrowed P20,000 from the bank and promised to pay the amount after one year. He
received the amount of P19,200 after the bank collected an advance interest of P800.
a.) What was the rate of discount?
b.) What was the rate of interest that the bank collected in advance?

PROBLEM 3: On his recent birthday on April 18, 2012, Mark was given by his mother a certain amount of
money as birthday present. He decided to invest the said amount on a 12% exact simple interest.
If the investment will mature on Christmas day at an amount of P15,000, how much did Mark
receive from his mother on his birthday?

PROBLEM 4: Determine the exact simple interest on P20,000 for the period from January 15 to November 15,
2012 if the rate of simple interest is 5%.

PROBLEM 5: Determine the ordinary simple interest on P10,000 for 11 months and 21 days if the rate of
interest is 10%.

Faculty: Engr. Ian Kenneth B. Yalung, RCE Page 1