SEATWORK

ACTIVITY
ENGINEERING ECONOMY
CHAPTER 1
 PROBLEM NO.1

• A student borrows P3,000 from his uncle

in order to finish school. His uncle agrees
to charge him simple interest at the rate of
5% per year. Suppose the student waits
two years and then repays the entire loan.
How much will he have to repay?
• 2. Determine the principal that would have
to be invested to provide $200 of simple
interest income at the end of two years if
the annual interest rate is 9%
• 3. Suppose that the interest rate is 10%
per year, compounded annually. What is
the minimum amount of money that would
have to be invested for a two-year period
in order to earn $300 in interest?
• 4. How long would it take for an investor to
double his money at 10% interest per year,
compounded annually?
5. How long will it take for an investment of
$5000 to grow to $7500, if it earns 10%
simple interest per year?
5. Determine the exact simple interest on
P76, 864.21 invested for the period from
January 15, 1996 to October 12, 1996, if the
rate of interest is 18%.
6. Determine the exact simple interest on
P76, 864.21 invested for the period from
January 15, 1996 to October 12, 1996, if the
rate of interest is 18%.
7. A man deposited P1000.00 at a rate of
10% per annum for 3 years, 8 months, 25
days. Find the ordinary simple interest
8. A man deposited P1000.00 at a rate of
10% per year from January 15, 1996 to
October 25, 1996. Find the exact simple
interest.
9. How much should be deposited now at a
rate of 12% compounded quarterly. If the
expected amount will be P10,000.00 after 5
years?
10. A man bought a second hand car that worth
P150,000.00 if paid in cash. However in
installment basis, he made a down payment of
P50,000.00 and the balance where paid according
to the following. He paid P30,000.00 of the end of
the 1st year, P40,000.00 at the end of 2nd year and
a final payment of 5th year. Find the final payment
if money worth 12% per year.