ENGINEERING ECONOMICS QUIZ

Engr. Trinidad loans from a loan firm an amount of P100,000 with a rate of simple interest of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, she has to pay the full amount of P100,000, what is the actual rate of interest?

0.235

0.25

0.258

0.247

TRUE ANSWER : ?
YOUR ANSWER : ?

Mr. Jun Ramos was granted a loan of P20,000 by his employer Excel First Review and Training Center, Inc. with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note.

P19,000

P19,100

P18,000

P18,900

TRUE ANSWER : ?
YOUR ANSWER : ?

What is a measure of the average speed with which accounts receivable are collected?

Current ratio

Acid test ratio

Quick ratio

Receivable turnover

TRUE ANSWER : ?
YOUR ANSWER : ?

Which one of the following is not a construction estimate?

None of these

Definite estimate

Conceptual preliminary budget

Initial feasibility estimate

TRUE ANSWER : ?
YOUR ANSWER : ?

What type of bond whose guaranty is in lien on railroad equipment, such as freight and passenger cars, locomotives, etc.?

Equipment bond

Equipment obligation bond

Equipment trust bond

Railroad bond

TRUE ANSWER : ?
YOUR ANSWER : ?

What is the factor name of the formula [i(1+i)^n]/[((1+i)^n)-1]?

Capital recovery

Uniform gradient future worth

Single payment present worth

Uniform series sinking fund

TRUE ANSWER : ?
YOUR ANSWER : ?

Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ______ whichever is smaller.

Fixed percentage of gross income or the net taxable income

50% of the fixed percentage of gross income or the net taxable income

Fixed percentage of gross income or 50% of the net taxable income

50% of the fixed percentage of gross income or 50% of the net taxable income

TRUE ANSWER : ?
YOUR ANSWER : ?

The owner of the construction company makes use of the estimate:

To determine the capital investment costs

To assist in financial arrangements

All of these

To determine economic feasibility of the project

TRUE ANSWER : ?
YOUR ANSWER : ?

Salvage value is sometimes known as ______.

Going value

Scrap value

Junk value

Second-hand value

TRUE ANSWER : ?
YOUR ANSWER : ?

Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest.

0.1029

0.1154

0.1203

0.1219

TRUE ANSWER : ?
YOUR ANSWER : ?