Engineering Economics If interest is paid more than once in a year, ‘i’ is the rate of interest per year, ‘n’ is the number of periods in years and ‘m’ is a number of periods per years, compound amount factor (CAF) is: (1 + i/m)n (1 + i/n)m (1 + i/m)1/n (1 + i/n)1/m (1 + i/m)n (1 + i/n)m (1 + i/m)1/n (1 + i/n)1/m ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate? 0.1632 0.1628 0.1647 0.1602 0.1632 0.1628 0.1647 0.1602 ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal? Interest rate Yield Rate of return Return of investment Interest rate Yield Rate of return Return of investment ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics If ‘P’ is principal amount, ‘i’ is the rate of interest and ‘n’ is the number of periods in years, then the interest factor is: ni None of these (1 + ni) (ni - 1) ni None of these (1 + ni) (ni - 1) ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties? Market value Book value Fair value Franchise value Market value Book value Fair value Franchise value ANSWER DOWNLOAD EXAMIANS APP
Engineering Economics Which is NOT an essential element of an ordinary annuity? The amounts of all payments are equal. The first payment is made at the beginning of the first period. The payments are made at equal interval of time. Compound interest is paid on all amounts in the annuity. The amounts of all payments are equal. The first payment is made at the beginning of the first period. The payments are made at equal interval of time. Compound interest is paid on all amounts in the annuity. ANSWER DOWNLOAD EXAMIANS APP
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