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Engineering Economics

Engineering Economics
What is the feature of some bonds whereby the issuer can redeem it before it matures?

Recall clause
Call class
Callability
Return clause

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Engineering Economics
A college freshman borrowed P2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected the advance interest of P80.00. What was the rate of discount?

0.04
0.0425
0.0415
0.0367

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Engineering Economics
Capitalized cost of any structure or property is computed by which formula?

First cost + interest of first cost
First cost + salvage value
Annual cost – interest of first cost
First cost + cost of perpetual maintenance

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Engineering Economics
What is the type of annuity that does not have a fixed time span but continues indefinitely or forever?

Perpetuity
Deferred annuity
Ordinary annuity
Annuity due

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Engineering Economics
What refers to the goods and services that are required to support human life, needs and activities?

Consumer products
Luxury
Necessity
Producer products

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Engineering Economics
What refers to the present worth of all the amount the bondholder will receive through his possession of the bond?

Par value of bond
Face value of bond
Value of bond
Redeemed value of bond

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