MULTIVECTOR REVIEW AND TRAINING CENTER

DHVTSU EE Department
ENGINEERING ECONOMICS
EXERCISES
REE – Sept. 2014
1. What is the interest of P8,600 after 4 years at 12% simple interest rate?
A. P4,161 B. P4,116 C. P4, 218 D. P4,128

REE – Sept. 2014

2. It is the interest earned by the principal which is added to the principal will also earn an interest for the
succeeding periods.
A. compound interest B. simple interest C. discount D. interest rate

REE – May 2010

3. The mathematical expression (1 + i)^n is referred to
A. compounded B. interest factor C. future factor D. compound amount factor

REE – Apr. 2013

4. What is the factor name for the formula (1 + I )^-n?
A. Uniform gradient future worth C. Single payment present worth
B. Capitol recovery D. Single payment compound amount

REE – Sept. 2014

5. Find the future amount of P12,000 after 12 years with an interest rate of 9% compounded semi-annually?
A. P33,272 B. P34,426 C. P34,512 D. P36,186

REE – Sept. 2011

6. How much should you put into a 7.9% savings account in order to have $ 175,000 in 63 years?
A. $1,541.44 B. $1,454.41 C. $1,342.21 D. $1,356.32

7. The accumulated amount after 3 years of P 1,000 invested at the rate of 8% per year compounded
continuously is
A. P 11,023.18 B. P 1,023.18 C. P 2,758.50 D. P 1,271.25

REE – Sept. 2015

8. What is the effective annual interest rate on a loan if the nominal interest rate is 12% per year compounded
quarterly?
A. 11.75 percent B. 12 percent C. 12.25 percent D. 12.55 percent

REE – Sept. 2015

9. Find the amount of money you have to deposit in order to accumulate P1,500 per year for 10 years with an
interest rate of 12 percent compounded quarterly.
A. P4,958.71 B. P4,598.71 C. P34,672.16 D. P36,472.16

REE – Apr. 2011

10. I want to have a P 1M in 20 years, what is my monthly deposit in 8% compounded monthly?
A. P 3,948 B. P 1,846 C. P 1,689 D. P 2,694

REE – May 2010

11. A man pays P15,000 annually starting at the end of the 5th year until at the end of the 10th year, P20,000 at
the end of the 11th year until at the end of the 15th year, and P35,000 annually for the succeeding 5 years. With 10%
interest, what annuity should he pay for 20 years to settle that amount equally?
A. P16,850.26 B. P10,625.24 C. P14,208.25 D. P12,405.23

REE – Sept. 2010

12. A 10 thousand pesos loan is to repaid at the rate of 200 pesos per month with an annual effective rate of
19.56% charged against the unpaid balanced. What principal remains to be paid after the 3rd payment?
A. P 9,500 B. P 9,800 C. P 8,900 D. P 9,200

REE – Apr. 2001 / Apr. 2005

13. The VCP Trading Co. sets aside P 200,000 each year for expansion. If the fund earns 8% compounded
annually, how long will it take before a new building costing P 2,500,000 can be built?
A. 7 years B. 9 years C. 8 years D. 6 years
 MULTIVECTOR REVIEW AND TRAINING CENTER
DHVTSU EE Department
ENGINEERING ECONOMICS
14. A farmer bought tractor costing P 25,000 payable in 10 semi-annual payments, each installment payable at the
beginning of each period. If the rate of interest is 26% compounded semi-annually, determine the amount of each
installment.
A. P 5,280.90 B. P 3,890.30 C. P 3,760.45 D. P 4, 077.20

REE – Apr. 2002 / Sept. 2002

15. A debt of P 100,000 is to be discharged by ten semi-annual payments, the first to be made 6 months after the
loan is given. The debt will be discharged by 5 equal payments each P 10,000 and by 5 other equal payments of such
amount that the final payment will liquidate the debt. If interest is 12% compounded semi-annually, what is the amount
of the last 5 payments?
A. P 16,386.74 B. P 18,386.74 C. P 22,956.44 D. P 18,584.36

REE – Oct. 2000 / Sept. 2004 / May 2008

16. Supposed a man receives an initial annual salary of P 60,000 increasing at a rate of P 5,000 a year. If money is
worth 10%, determine his equivalent uniform salary for a period of 8 years.
A. P 73,022.66 B.P 74,022.66 C. P 76,022.78 D. P 75,022.39

REE – Oct. 2000 / Apr. 2001 / Apr. 2004

17. Is the worth of property as shown in the accounting records.
A. Scrap Value B. Book Value C. Fair Value D. Use Value

REE – Oct. 2000 / Apr. 2001 / Apr. 2004

18. Is the worth of property which is equal to the original cost less the amount which has been charged to
depreciation.
A. Scrap Value B. Book Value C. Fair Value D. Use Value

REE – Apr. 2007

19. A machine was purchased 5 years ago at a cost of P 120,000. It’s estimate salvage value at the end of 10 years
is P 10,000. If it is sold now for P 30,000, what is the sink cost if the depreciation method used is straight line method?
A. P 21,000 B. P 30,000 C. P 35,000 D. P 25,000

REE – Apr. 2007

20. It is interest earning with equal deposit made at equal interval time.
A. amortization B. dividend C. sinking fund D. depletion

REE – Apr. 2003 / Sept. 2005

21. The original cost of a certain piece of equipment is P 150,000 and it is depreciated by 10% sinking fund method.
Determine the annual depreciation charge if the book value of the equipment after 10 years is the same as if it had
been depreciated at P 14,000 each year by straight-line formula.
A. P 7,843.35 B. P 8,784.36 C. P 8,748.36 D. P 7,858.35

22. A machine costs P 50,000, last 10 years and has a salvage value at the end of life of P 5,000. Determine the
depreciation charge during the 5th year and the book value at the end of 5 years by SYD method.
A. P 4,909.091, P 32,727.273 C. P 3,908.091, P 35,285.254
B. P 4,909.091, P 17,272.73 D. P 4,505.091, P 21,235.528

REE – Apr. 2001 / Sept. 2003

23. Is a measure of the effectiveness of an investment of a capital.
A. Rate of Return C. Annual Worth Method
B. Effective Interest Rate D. Principal or Present Worth Method

24. A machine cost P 50,000 and has an expected life of ten years. The salvage value is estimated to be P 2,000
and annual operation costs are estimated at P 1,000. What is the appropriate rate of return on the investment if the
annual revenue is P 10,000?
A. 12% B. 11% C. 13% D. 14%

REE – Apr. 2001 / Apr. 2004

25. The total income equals the total operating cost.
A. Break-even-no-gain-no-loss C. Interest Rate
B. In-piece-value D. Scrap Value

26. A shoe manufacturer produces a pair of shoes at a labor cost of P 8.50 and materials cost P 23.50, the fixed
charges on the business are P 10,125 a month and the variable costs are P 2.50 a pair. If the shoes sell to retailers for
P 48.00 a pair, how many pairs must be produced and sold each month for the manufacturer to break even?
A. 1000 B. 250 C. 750 D. 450