ENGINEERING

ECONOMY
CalcTech v1.0.1
Determine the effective rate of 12% compounded
quarterly.

a. 12.89%
b. 12.57%
c. 12.55%
d. 11.67%
Given the effective rate of 12%, find the nominal rate
compounded semi-annually.

a. 12.12%
b. 11.39%
c. 11.49%
d. 11.66%
Find the nominal rate which if converted quarterly
could be used instead of 12% compounded monthly.
What is the corresponding nominal rate?

a. 12.46%
b. 12.12%
c. 12.19%
d. 12.89%
Find the nominal rate compounded monthly which is
equivalent to 12% compounded quarterly.

a. 11.88%
b. 10.57%
c. 12.78%
d. 12.67%
If P1,000 becomes P1,811.36 after 5 years when invested at
an unknown rate of interest compounded bimonthly,
determine the unknown nominal rate and the corresponding
effective rate, respectively.

a. 6%, 12%
b. 10%, 10.562%
c. 12%, 12.616%
d. 13%, 13.256%
What is the future worth of P12,000 deposited in an
account earning interest at the rate of 9%
compounded quarterly for 8 years?

a. 20,500.23
b. 25,400.56
c. 24,457.24
d. 23,642.56
A man possesses a promissory note whose maturity value
is P6,700, due in 3 years hence. If the rate of interest is 10%
compounded semi-annually, what is the value of this
note now?

a. 4,000
b. 6,000
c. 3,000
d. 5,000
By the conditions of a will, the sum of P25,000 is left to a girl to
be held in trust by her guardian until it amounts to P45,000.
When will the girl receive the money if the fund is invested at
8 percent compounded quarterly.

a. 6 years
b. 7 years
c. 8 years
d. 9 years
How long will it take for an investment to double its
amount if invested at an interest rate of 6%
compounded monthly.

a. 10 years
b. 12 years
c. 13 years
d. 14 years
How long will it take the money to triple itself if
invested at 8% compounded annually?

a. 14 years
b. 16 years
c. 15 years
d. 12 years
How much money should a man invest in a bank account
paying 8 percent annual interest compounded continuously
if he wants to use the money to buy a $20,000 car in 4 years?

a. $14,522.98
b. $13,007.32
c. $18,667.84
d. $12,780.05
How long will it take the money to double if it is
compounded continuously at an annual rate of 5%?

a. 12.45 years
b. 13.86 years
c. 15.26 years
d. 14.78 years
How much money will you invest today in order to
withdraw P2000 annually for 10 years if the interest
rate is 9%?

a. P12,835.32
b. P12,785.45
c. P12,563.25
d. P12,568.47
A man wants to buy a car by paying a down payment of
P100,000 and the balance to be paid monthly for 5 years
at 18%. What is the monthly payment if the cost of the car
is P600,000?

a. P15,465.24
b. P15,473.40
c. P16,769.60
d. P12,696.71
An employee obtained a loan of P100,000 at the rate of 6%
compounded annually to repair a house. How much must he
pay monthly to amortize the loan within a period of ten
years?

a. P1132.24
b. P1120.24
c. P1252.54
d. P1212.24
A father invest P10,000 now for the college education his new
born son. If the fund earns 14% effective, how much will the
son get each year starting from his 16th to 20th birthday?

a. P20,894.23
b. P20,791.64
c. P20,567.98
d. P20,587.43
A farmer bought a tractor costing P25,000 payable in 10
semi-annual payments starting at the beginning of each
period. If the interest rate is 26% compounded semi-annually,
determine the amount of each installment.

a. P5,047.30
b. P4,654.21
c. P4,077.20
d. P5,066.25
Suppose that you make 12 equal annual deposits of P2,000 each
into a bank account paying 8% interest per year. The first deposit
will be made one year from today. How much money can be
withdrawn from this bank account immediately after the 12th
deposit?

a. P35,492
b. P36,218
c. P37,954
d. P38,755
If P10,000.00 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 9th deposit is made? Cost
of money is 14%.

a. P23,546.19
b. P12,676.20
c. P10,000.00
d. P34,675.18
 Arithmetic Gradient
A certain amount was borrowed and to be repaid in ten
installments at the end of every year thereafter with each
payment P1000 more than the preceding. The first payment is
P15,000. If the interest is 12% compounded annually, determine
the amount loaned.

a. P150,465.25
b. P130,473.40
c. P106,769.60
d. P105,007.43
 Arithmetic Gradient
Find the present worth of the loan, if the first payment is $100
at the end of every year with each payment $10 less than the
previous year for four years. Interest is 10% compounded
annually.

a. $273.2
b. $372.2
c. $327.2
d. $237.3
 Geometric Gradient
The first-year maintenance cost for a new automobile is
estimated to be $100, and it increases at a uniform rate of
10% per year. Using an 8% interest rate, calculate the present
worth of the cost of the first 5 years of maintenance.

a. $840.43
b. $480.43
c. $240.83
d. $440.83
 Geometric Gradient
Annual maintenance costs for a machine are P1,500 this year
and are estimated to increase 10% each year every year.
What is the present worth of the maintenance cost for six
years if interest rate is 8%?

a. P8,728.79
b. P13,473.4
c. P16,769.6
d. P14,113.76
 Straight Line Method
A certain equipment has a first cost of P900,000, in life of 8
years and a salvage value of P200,000. What is the book
value of the equipment after 5 years using straight line
method?

a. P462,500
b. P457,500
c. P437,500
d. P442,500
 Straight Line Method
A certain equipment has a first cost of P900,000, in life of 8
years and a salvage value of P200,000. What is the annual
depreciation using straight line method?

a. P75,800
b. P57,800
c. P87,500
d. P78,500
 Straight Line Method
A printing equipment costs P73,500 has a life expectancy of 8
years and has a salvage value of P3500 at the end of its life. The
book value at the end of ‘x’ years is equal to P38,500. Using
straight line method of depreciation, solve for the value of x.

a. 5 years
b. 6 years
c. 4 years
d. 3 years
 Sinking Fund Method
A machine with a useful life of 15 years is bought for P20,000.
The money is worth 8% and the scrap value is P5,000. Using
Sinking Fund Method, determine the annual depreciation.

a. P552.44
b. P255.44
c. P442.55
d. P244.55
 Sinking Fund Method
A machine with a useful life of 15 years is bought for P20,000.
The money is worth 8% and the scrap value is P5,000. Using
Sinking Fund Method, determine the accumulated
depreciation for 4th year.

a. P12489
b. P11997
c. P2489.37
d. P1997.04
 Sinking Fund Method
A machine with a useful life of 15 years is bought for P20,000.
The money is worth 8% and the scrap value is P5,000. Using
Sinking Fund Method, determine the book value at the tenth
year.

a. P12,489
b. P11,997
c. P2,489.37
d. P1,997.04
 Declining Balance Method
A broadcasting corporation purchased an equipment cost
P7,000, last 8 years and has a salvage value of P350.
Determine the book value during the 4th year using declining
balance method.

a. P1,565.25
b. P2,214.84
c. P1,711.25
d. P1,645.84
 Declining Balance Method
A certain copier machine costs P150,000 with a trade in value
of P15,000 after making 800,000 copies. Using the declining
balance method, what is the book value when the machine
had made 300,000 copies?

a. P63,254.48
b. P64,765.25
c. P67,833.32
d. P130,473.4
 Double Declining Balance
Method
A broadcasting corporation purchased an equipment cost
P7,000, last 8 years and has a salvage value of P350.
Determine the book value during the 4th year using double
declining balance method.

a. P1,565.25
b. P2,214.84
c. P1,711.25
d. P1,645.84
 Double Declining Balance
Method
Cost of the machine is P140,000, useful life of 8 years, salvage
value of P10,000. Determine the 4th year depreciation charge
using double declining balance method.

a. P17,465.25
b. P14,764.625
c. P17,833
d. P13,473.4
 Sum of the years Digit
A telephone company purchased a microwave radio equipment for
P6M. Freight and installation charges amounted 3% of the purchased
price. If the equipment shall be depreciated over a period of 8 years
with a salvage value of 5%, determine the depreciation charge during
the 5th year using the Sum of the year’s digit method.

a. P563,444.33
b. P653,333.33
c. P635,333.33
d. P536,444.44