Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

OFFICE OF THE VICE PRESIDENT FOR BRANCHES AND CAMPUSES
STO. TOMAS BRANCH
OFFICE OF THE ACADEMIC HEAD

ENGINEERING ECONOMY
Quiz 1

Name: Score:
Course Yr &Sec.: Date:

Direction: Solve the following. Write your answers in the space provided before the
number. Good luck!

_______________ 1. Determine the exact simple interest on P 15,000 invested for the
period from January 8, 1996 to November 24, 1996, if the rate of interest is 19%.

_______________ 2. A man borrowed P 10,000.00 from his friend and agrees to pay at
the end of 90 days under 8% simple interest rate. What is the required amount?

_______________ 3. How long will it take money to double itself if invested at 5%

compounded annually?

_______________ 4. BPI Bank advertises 9.5% account that yields 9.84% annually.
Find how often the interest is compounded.

_______________ 5. Five years ago, a house was purchased for P 34,000. If it is sold
today for P 50,000, what is the rate of appreciation of its value?

_______________ 6. A man wishes his so to receive P 500,000 ten years from now.
What amount should he invest now if it will earn interest of 12% compounded annually
during the first 5 years and 15% compounded quarterly during the next 5 years?

_______________ 7. A young engineer bought a second-hand car worth P150,000 if

paid in cash. On the installment basis, he paid a down payment of P50,000; P30,000 at
the end of one year; P40,000 at the end of 2 years and a final payment at the end of 4
years. What will be the final payment if money worth 15% per annum?

_______________ 8. A firm borrows P 200,000 for 6 yr at 8%, to be repaid in a lump

sum at the end of 6 yr. At the end of 6 yr, the firm renews the loan for the amount due
plus P 200,000 more for 2 yr at 8%. What is most nearly the amount of the loan
renewal?

_______________ 9. An amount of P 1,000 becomes P 1,608.44 after 4 years

compounded bimonthly. Find the nominal interest.

_______________ 10. A man borrowed P 25,000 from a bank for which he signed a
promissory note to repay the loan at the end of one year. He only received the amount
of P 21, 915 after the bank collected the advance interest and an additional amount of P
85.00 for legal fees. What was the rate of interest that the bank charged?

Prepared by:

Engr. Billy Ray M. Oldan, MSEE

Associate Professor V

Poblacion 2, Sto. Tomas Batangas Phone: 043-7783508

E-mail Address: acadoffice_pupstotomas@pup.edu.ph
“ THE COUNTRY’S 1ST POLYTECHNIC U”