Rizal Technological UniversityElectronics Engineering Board Exam Review

Review in Mathematics

Name: _____________________

Module: Engineering Economy

PROBLEMS SOLUTION ANSWER

1. By the condition of a will, the sum of P 20,000 is left to a girl to be held in trust fund by her guardian until it amounts to P 50,000. When will the girl receive the money if the fund is invested at 8% compounded quarterly?

2. Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is 12% compounded quarterly. How much was initially borrowed if quarterly payment is P 2000.00?

3. How much must you invest today in order to withdraw P 2,000 annually for 10 years if the interest rate is 9%?

4. A person buys a piece of lot for P 100,000 downpayment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?

5. At an interest rate of 10% compounded annually, how much will a deposit of P 1,500 be in 15 years?

6. The effective rate of 14% compounded semi-annually is.

7. A man expects to receive P 25,000 in 8 years. How much is that money worth now considering interest at 8% compounded quarterly?

8. What will be the future worth of money after 12 months, if the sum of P 25,000 is invested today at simple interest rate of 1% per month?

1

9. What is the accumulates amount of five years annuity paying P 6,000 at the end of each year, with interest at 15% compounded annually?.

10. A debt of P 10,000 with 10% interest compounded semi-annually is to be amortized by semi-annual payment over the next five years. The first due in 6 months. Determine the semi-annual payment.

11. In how many years is required for P 2,000 to increase by P 3,000 if interest at 12% compounded semi-annually?

12. Find the present worth of a future payment of P 100,000 to be made in 10 years with an interest of 12% compounded quarterly.

13. The amount of P 50,000 was deposited in the bank earning at interest of 7.5% per annum. Determine the total amount at the end of 5 years, if the principal and interest were not withdrawn during the period?.

14. A man buys a house and lot worth P1,000,000. If he pays in cash on the installment basis, he pays P500,000 downpayment, P100,000 at the end of first year, P150,000 at the end of second year and a final payment at the end of fourth year. Find the amount of the final payment if the interest is worth 14% compounded annually.

15. A machine costing P 45,000 is estimated to have a book value of P 4,350 when retired at the end of 6 years. Depreciation cost is computed using a constant percentage of the declining book value. What is the annual rate of depreciation in %?

2