Quiz 01 : Module 1&2 Due Sep 16 at 11pm Points 100 Questions 60 Available Sep 16 at 6pm - Sep 16 at 11pm 5 hours Time Limit 90 Minutes This quiz was locked Sep 16 at 11pm, Attempt History Attempt Time Score Latest Attempt 4 67 minutes 86 out of 100 Score for this quiz: 86 out of 100, Submitted Sep 16 at 7:19pm ‘This attemot took 67 minutes. Question 1 114 pts Make or buy decision Equipment Selecto Cost Reduction Equipment ReplacemenProduct Expansion Question 2 1/4 pts ‘The present worth, annual cost, and rate of return methods of comparing alternatives yield equivalent results, but they are distinctly diferent approaches ‘Analysis and comparison of alternatives Development of feasible alternatives Problem definition, formulation and evaluation Development of cash flow for each alternative. Question 3 011 pts ‘The costs between allematives Correct Answer Difrentia Revenue Incremental expenseNone of the above vote [oot ] Question 4 0/1 pts ch tert tb en stm — Under concitions of perfect competion, the price at which any given product willbe supplied and purchased i the price that wll result in the supply and the demand being equal,Question 5 111 pts Problem must be understood and stated in an explicit form before the project team process with the rest of the analysis, Development of feasible alternatives Development of cash low for each alternative. Correct Problem defiton, formulation and evaluation Analysis and comparison of alternatives Question 6 114 pts Involves selecting the best course of action or alternative where there are several ways to meet a project's requirement Correct! Equipment or process selection Comparison of alternatives Selection of eteria Selecting the bes alternativeQuestion 7 114 pts Projects that involves large sums of money invested in long periods af time Decision making process Large Scale Engineering Economic decisions Project Expansion Evaluation of feasible altematives Question 8 111 pts 's a social science that studies the production, distribution, and consumption of goods and services? Engineering economics None of the above Economics Engineering DecisionsQuestion 9 114 pts ‘A subset of economics concemed with the use and application of economic principles in the analysis, of engineering decisions Engineer's Role in busin Engineering Engineering Decision Making Correct! Engineering Economics Question 10 011 pts ‘This explains how the amount of money changes over time for both money owed and money borrowed (inflation, opportunity costs, et). You Answered The time value of money Connect Answer ‘The eaming power of money Economic EquivalenceThe purchasing power of money Question 11 0/1 pts You Answered Correct Answer Find ways of reconciling limited wants with unlimited resources? Economies Engineering economics Engineering Decisions [None of the above Question 12 1/1 pts Correct! Expenditures that would increase the output of existing production or distribution facilities. Equipment reptacement Product Expansion New ProductCorrect! Equipment Selection Question 13, 1/4 pts Which is not a type of engineering economic decision, New Product expansion Equipment selection Service Increase Process Selection Question 14 1/1 pts Consideration of expenditures necessary to produce a new product or to expand into a new geographic area Equipment reptacement Product ReductionCorrect! You Answered Now Product Equipment Selection Question 15, 111 pts ‘Searching for potential alternatives, screening them to select a smaller group of feasible altematives: for detailed analysis Development of cash low for each alternative. Problem definition, formulation and evaluation Analysis and comparison of alternatives Question 16 0/1 pts ‘An interest rate that does not include any consideration of compounding. Simple InterestEffective interest Rate Rate of iniorest Conrect Anwar "Nominal intrest Rate Question 17 114 pts Defined as the cost of having money available for use. Simple Interest Interest Compound Interest Interest Rate Question 18 114 pts 's the amount of goods and services that can be purchased with a unit of currency => (https:llen.wikipedia.orgiwiki/Gurrency)..Correct! Purchasing Power Interest Rate Time value of money Earning Power Question 19 1/1 pts |s a company’s abilly to generate profit. Specifically its ability to generate profit from its operations. Time value of money Eaming Power Interest Rate Purchasing Power Question 20 111 pts ‘The prevailing rate of interest on loans determined by the demand and supply of credit and based on the duration (the longer the duration, the higher the rate) of loan and type of security offered (thehigher the quality of security, the lower the rate). Intation Effective Rate of Interest ‘Market Interest Ra Currency Value Question 21 111 pts ‘A percentage that is periodically applied and added to an amount, Simple intrest Interest Question 22 114 ptsCorrect! Finding the present worth of a future sum is simply the reverse of compounding and is known as the Discounting Factor Discount Discount Rate Discounting Process Question 23, 1/1 pts ‘An annuity for which the cash flow occurs at the beginning of each period. Oninary Annuity Deferred Annuity ‘Annuity Due Annuity Question 24 1/4 pts‘As the number of compounding periods (M) becomes very large, the period (riM) becomes very small. terest rate per compounding Continuous Compounding Discrete Compounding Compounding interest Simple Interest Question 25, 114 pts ‘An annuity where in the first payment interval does not coincide with the first interest period. The first payment is put-off to some later date, Ordinary Annuity Annuity Due Deferred Annuity PerpetutyQuestion 26 1/1 pts Is an annuity whose term is infinite Deterred Annuity Ontinary Annuity Perpetuity Annuity Due Question 27 0/1 pts You Answered Correct Answer a fixed sum of money paid to someone each year, typically for the rest of their life. Annuity Gradient Simple PerpetuityQuestion 28 111 pts a form of insurance or investment entiing the investor to a series of annual sums. ‘Annuity Perpetuity Gradient Simple Question 29 114 pts ‘Suppose that there is a series of "n* payments uniformly spaced but differing from one period to the next by a constant. ‘Avitymetic Gradient Geometric Gradient Annuity PorpetityQuestion 30 114 pts is the process of spreading out a loan into a series of fixed payments aver time. Youll be paying off the loan's interest and principal indifferent amounts each month, although your total payment remains equal each period. Annuity Com ing Interest ‘Amorization Annuity Due Question 31 212 pts ‘The exact simple interest of P5,000 invested from June 21, 1995 to December 25, 1995 is F100. Whatis the rate of interast?3.90% Question 32 212pts Whats the interest earned on $1,000 for 10 years at 7% simple interest sato Question 33, O12 pts You loan from firm an amount of 100,000 with a rate of simple interest of 3.0% per annum but the Interest was deducted from the loan at the time the money was borrowed. Iat the end of one year, you have to pay the full amount of 100,000, what s the actual rate of interest?You Answered Correct Answé 4.12% 3.09% Question 34 0/2 pts Correct Answer You Answered 'P4,000 is borrowed for 75 days at 16% per annum simple exact interest in year 2021. How much wil be due at the end of 75 days? 4.13150 P4t31.14 4,000.00 P4193 Question 35, 212pts P4,000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at the end of 75 days?Correct! 4,205.65 4,500 4.19333 4,100 Question 36 212pts You are considering investing $1,000 at an interest rate of 6% compounded annually for five years or investing the $1,000 at 7% per year simple interest for five years, Which is better? Lacks data The same Future amount due ‘Simple Interest Question 37 O12 ptsYou Answered Correct Answer Correct! P4,000 is borrowed for 75 days at 16% per annum simple exact interest. How much will be due at the end of 75 days? Assume, itis a Leap Year. P 4.19150 4,200.00 Pat3t15, P 4.13333 Question 38 212pts If David deposit the $3,000 in another savings account that eams 8% interest compounded yearly, how many years will it take to double your balance? 9.01 Years 10 Years 11.11 Years 11 YearsQuestion 39 212 pts What is the amount of interest earned on $2,000 for five years at 10% simple interest per year? $1,000 51.180 51.150 $1,250 Question 40 0/2 pts A deposit of P 110,000 was made for 31 days. The net interest after deducting 20% withholding tax is 890.36. Find the rate of return annually ‘Assume : 365 Days in a year You Answered ‘95%Correct Answer 11.85% 11.50% Question 41 212pts Correct! To the closest year, how long wilt take $200 to double if itis deposited and earns the 18% interest? 45 years 30 years 50 years 42yoars Question 42 212pts Julie borrowed a certain amount from Diane on June 1990. Two years later, Julle again borrowed P 5,000. Julie decided to pay P 1,000 on June 1993 and discharged her balance by paying P 7,500 on June 1995. What was the amount borrowed on June 1990 i the interest rate Is 8% compounded annually?Correct! Correct! 1,389.50 Piettst 1,742.30 P 1,584.20, Question 43, 212pts ‘Assuming an interest rate of 8% compounded annually, How much money will be required in four years in order to repay a $15,000 loan borrowed now? 820,410.34 $11,025.45 $11,025.44 $20,407.33, Question 44 212ptsCorrect! ‘The amount P150,000 was deposited in the bank earning an interest of 7.5% per annum. Determine the total amount at the end of 5 years i the principal and interest were not withdrawn during the period 21534440, 300,458.9 108,781.50, 200,384.50 Question 45 212pts When will an amount be tripled with an interest rate of 11.56%? 8 years 10.08 yearsCorrect! Correct! Question 46 212pts ‘ATabric company is considering the purchase of a new scutching machines. A similar purchase 4 years ago cost $250,000. At an interest rate of 7% per year, what is the equivalent value today ofthe previous $250,000 expenditure? $227,689.00 Question 47 212pts 11'P25,000 is invested at 8% interest compounded quarterly, how many years will it take for this ‘amount to accumulate P45,000? 8.40 yearsQuestion 48 2/2pts ‘A student plan to deposit P1,500 in the bank now and another P3,000 for the next 2 years. if he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, ‘What willbe the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10% Correct! pistass P175427 P 1,495.48 Question 49 212pts ‘Assuming an interest rate of 8% compounded annually, How much money can be loaned now if {$6,000 is to be repaid at the end of five years? Correct! 5408350Question 50 212pts To raise money for a new business, a man asks you to loan him some money, He offers to pay you P3,000 at the end of four years. How much should you give him now if you want 12% interest per year on your money? 1,908.55 Question 51 313 pts A local newspaper headline blared, “Bo Smith Signs for $30 Million." The article revealed that, on April 1, 2002, Bo Smith, the former record-breaking running back from Football University, signed a {$30 million package with the Nebraska Lions. The terms of the contract were $3 milion immediately, {$2.4 milion per year for the first five years (with the first payment after one year), and $3 million perCorrect! Correct! year forthe next five years (with the frst payment at the end of year six). Ifthe ‘compounded annually, what is Bo's contract worth atthe end of 10 years? torest rate is 8% $48,764,485.49 $44,764,823.76. $44,764,446 .25, $44,764,878.03, Question 52 313 pts ‘Aman who is planning to retire in 9 years’ time, deposits $1,200 at the end of each year. Ifthe Interest rate is 12 % compounded annually, what will be the amount he will receive when he retires? $17,732.08 $17,7485 80 $17,730.79, 517,785.58Question 53, 313 pts Acar dealer advertises the sale of a car model for a cash price of P280,000, If purchased on installment, the regular downpayment is 15% and balance payable in 18 equal monthly installments at an interest rate of 1.5% per month. How much will be required on the monthly payments? P1s632.11 15,289.12 15,188.78 Question 54 313 pts Kim deposits her annual bonus into a savings account that pays 6% interest compounded annually. ‘The size of the bonus increases by $1,000 each year, and the initial bonus amount is $3,000. Determine how much willbe in the account immediately after the fifth deposit $27,529.50,Correct! Question 55 313 pts ‘The maintenance on a machine is expected to be P15S at the end of the first year, and increasing P35 each year forthe following 7 years. What present sum of money would you need to set aside to pay the maintenance for the whole 8-year period? Assume 6% interest, 1,883.22 1,686.98 1,903.25 1,500.33 Question 56 313 pts Find the equivalent equal-payment series C, using an A/G factor, such that the two accompanying cash flow diagrams are equivalent at 10% compounded annually Year 0 - $50Year 2-$100 Year 3 -$150 Year 4 -$200 Year 5 - $250 What is the Equivalent Annuity for 5 Years of the cash flow provided sunt Question 57 3/3 pts Whats the equal-payment series for 10 years that is equivalent to a payment series starting with {$12,000 at the end of the first year and decreasing by $1,000 each year over 10 years? Interest is. 8% compounded annually.sa219 $8,125 $8,128 sa.n7 Question 58 313 pts ‘The amount P150,000 was deposited in the bank earning an interest of 7.5% per annum. Determine the total amount at the end of 5 years ifthe principal and interest were not withdrawn during the: period. 300,456.00 200,384.50 108,781.50 21594440, Question 59 313 ptsConsider a $25,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 10%. Compute for the annuity Correct! $6,504.94 $4,890 Question 60 313 pts 1¥ 10,000 is deposited each year for 9 years, how much annuity can a person get annually from the bank every year for 8 years starting 1 year after the 9" deposit is made. Cost of money is 14%. Correct! 3475.18 34,143.99Quiz Score: 86 out of 100Quiz 02 : Module 3 Due Oct 14 at 9:30pm Points 60 Questions 30, Available Oct 14 at 6pm - Oct 14 at 9:30pm 3 hours and 30 minutes ‘Time Limit 90 Minutes Allowed Attempts 2 This quiz was locked Oct +4 at 9:30pm, Attempt History Time Score Latest Té minutes 42 out of 60 Score for this attempt: 42 out of 60 Submitted Oct 14 at 9:13pm ‘This attempt took 76 minutes. Question 1 O12 pts ‘An amount of P1,000 becomes 1,679.67 after 5 years compounded bimonthly. Find the nominal interest.You Answered Correct Answer 12.21% compounded bimonthly 10.38% compounded bimonthly Question 2 212pts Correct! You want to buy a car, and a local bank will land you $20,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 12% with interest paid monthly, What is the loan's effective interest rate? 12.6025% 1.3608% 11.5811% 12.0022% Question 3 O12 pts Inhow many years will an intial investment of P2.00 be P13.00 if daily?8.10 years, You Answered 9.67 Years Correct Answer 8.51 yeors 9.00 Years Question 4 212 pts What is the initial investment forthe future Amount of P50,000 in 5 years at 22% compounded quarterly? 20,017.20 Correct! 179845 13,422.44 17,609.22 Question 5 212ptsinvestment for the future Amount of P50,000 in 5 years at 20% compounded semi- Whats the inti annually? 1942244 20,017.20 Correct! sear746 Question 6 0/2 pts Ifyou have a future payment of P 78,000 in 32 months, at an interest rate of 32% compounded ‘monthly, what was the amount you borrowed? You Answered 4.800 Correct Answer 3,801 34,546Question 7 0/2 pts You borrowed money from a friend worth P 42,000 to be paid 6 months, your initial discussion was to hhave it at an interest rate of 4% per month, What is the ER? 24.00% 48.00% Correct Answer 60.10% You Answered ‘pes3% Question 8 212pts What is the future value of an investment of P20,000 with 20% interest rate compounded quarterly in five years? 53,085.95 45.0 54.0 48,567.28Correct! Question 9 212pts ‘An investment was made by John at P23,000 that has an effective rate of interest of 26.53% compounded every two months. What isthe value of the investment at the end of 6 years? P94ast.94 98.930 54 P 92,950.45 P 94,300 54 Question 10 212pts You borrowed money from a friend worth P 42,000 to be paid 6 months, your initial discussion was to have it at an interest rate of 4% per month. What wil the amount you have pay after 6 months? 59,143.40 54.15 52,010.00Correct! definitely hide ater 6 months Question 11 212pts Ifthe effective interest rate is 21.55% for a certain nominal rate compounded quarterly, what is the ‘nominal rate? 40.45% 20.0% 40.79% Question 12 212pts Ir the nominal rate is 40% compounded monthly, what is the equivalent semi-annual effective interest rate? an7e% 25.01%20.83 20.38% Question 13, 0/2 pts A debt of P with interest of 25% compounded quarterly is to be amortized by 7 equal semi-annual payments over the next 4 years. If the annuity payment is P3,615.84 every 6 months starting at the fend of 1 year, what is the amount borrowed? Correct Answé P18,000 You Answered P5100 P 16,000, P 15,200 Question 14 O12 pts You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 6 years, and the nominal interest rate would be 12% with interest paid monthly. What is the monthly loan payment?$544.09 $354.09 You Answered ‘$904.89 Correct Answer $291.00 Question 15, 212pts Mrs. Cheng borrows P100,000 at 10% effective annual interest. She must pay back the loan over 30 years with uniform monthly payments due on the frst day of each month, How much does she pay per month? Pease Pase.t Poais2 76579 Question 16 0/2ptsCorrect Answer Afuly secured loan of P30,000 was o be amortized by 10 semi-annual payments, the frst payment, tobe made 6 months after the loan finalization. After the 6 payment was made, the debtor was in a position to settle the entre debt balance by a single payment on that date. Ifthe interest on the loan is 12% compounded semi-annually, what would be the amount of ths single payment? P19.21389 P 1412391 Pogize8 Question 17 212pts You are about to borrow $3,000 from a bank at an interest rate of 9% compounded annually, You are required to make three equal annual repayments in the amount of $1,185.16 per year, withthe first repayment occurring at the end of year one. What is the principal amount paid on the second year?Correct! 9997.52 Question 18 212pts You are about to borrow $3,000 from a bank at an interest rate of 9% compounded annually. You are required to make three equal annual repayments in the amount of $1,185.16 per year, withthe first repayment occurring at the end of year one, What is the principal amount paid on the third year? 5915.16 51,185.16 $1,087.32 Question 19 212pts Whats the future worth of an equal quarterly payment series of §2,500 for 10 years, ifthe interest rate is 9%, compounded monthly?Correct! $147,905 $160,058 sisa.ri8 Question 20 0/2 pts Correct Answé You Answered Given the rate, 1 % compounded monthly, what is the semi-annual effective rate? 02% osm 04% Question 21 212pts Whats the nominal interest rate inthe interest statement: 12% per year, compounded monthly? 3%Correct! 2% 10% Question 22 212 pts Ben invested $5,000 for 10 years at 9% compounded quarterly, how much money would he have? $12,175.94 $12,168.60 Question 23, 212pts ‘You borrow $15,000 from your credit union to purchase a used car. The interest ate on your loan is 0.25% per month and you will make a total of 36 monthly payments, What is your monthly payment?$416.50 $406.50 $426.50 Correct! 5438.50 Question 24 212pts What is the effective annual interest rate if the nominal interest rate is 6%, compounded monthly? 5.8790% per year 5.9807% per year 6.1878% per year 6.7456% per year Question 25, 212pts Mal is thinking of investing $600 at the end of every six months for the next six years with the invested funds eaming 6.4% compounded semi-annually. How much money will she have after sixyears? Correct! sasize Question 26 212pts ‘A deposit of $100 is placed into a college fund at the beginning of every month for 10 years. The fund ‘ears 9% annual interest, compounded monthly, and paid at the end of the month. How muct isin the account right after the last deposit? $19,451.43 $19,551.43 $19,351.49, 1.43Correct! Question 27 212pts Itis the rate that corresponds to the actual interest period Etecve Nominal Question 28 212pts ‘A person borrows $5,000 for 3 years, to be repaid in 36 equal monthly installments. The interest rate is 10% per year, compounded continuously. How much money must be repaid at the end of each month? $123.70 $184.09 $161.43 $172.88Question 29 212pts What is the future worth of an equal quarterly payment series of §2,500 for 10 years, i the interest rate is 9%, compounded monthly? $147,905 Correct! $160,058 s154.718 $151,930 Question 30 0/2 pts ‘To purchase his new car, Maxim has obtained a six-year loan for $40,000 at 8.8% compounded semi annually. Determine the monthly payments required on the loan. You Answered ‘$698.30 $03.25 Correct Answer s7is08 $728.28Quiz Score: 42 out of 60