Engecon Activity1

Republic of the Philippines
DON HONORIO VENTURA STATE UNIVERSITY

Villa de Bacolor, Pampanga
COLLEGE OF ENGINEERING AND ARCHITECTURE
ENGECON213 – Engineering Economics
PLATE 1 (
Name: ________ Score: _____________

Course & Sec.: Date: ______________
GENERAL INSTRUCTIONS:
1. Show your complete and comprehensive solution.

2. Enclosed your answer in a rectangle.
3. Strictly follow the instructions. Ignorance of laws may result to
deduction.
1. What is the simple interest of 500 pesos at 12% annually within 5

years? P300
2. P 4,000 is borrowed for 75 days at 16% per annum simple interest. How
much will be due at the end of 75 days. P4,133.33
3. A man is required to pay P57,500.00 in 15 days or P60,000.00 in 60

days. Find the annual rate of simple interest. 34.78%
4. If a man borrowed money from his girlfriend with simple interest rate
of 12%, determine the present worth of P74,900.00, which due at the
end of seven months. P70,000.00
5. It is the practice of almost all bank 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
P80000 was approved at an interest rate of 14% of which 11200 was
deducted and you were given a check of P68800. Since you have to pay
the amount of P80000 one year after, what then will be the effective
interest rate? 16.28%
6. Determine the accumulated amount using exact simple interest on

P10,000.00 for the period from January 20,1990 to November 28 of the
same year at 15% interest rate. P11,282.19
7. You owe P120,000 from a friend and promise to pay 6% simple interest.
How much will you pay at the end of 9 months? How about at the end of
1 year and 6 months? P125,400.00 & P130,000.00
8. A price tag of P150,000 is payable in 60 days. A 3% discount is

offered if paid in 30 days. What is the rate of simple interest.
37.11%
9. A man borrowed P150,00.00 and promised to pay after 7 months at a
simple interest of 9% per month. How much will the man pay?
P244,500.00
10. Determine the exact simple interest of P500.00 for the period from
January 10 to October 28, 1996 at 16% interest. P63.825
11. A man borrowed from a bank under a promissory note that he signed in
the amount of P60,000.00 for a period of one year. He received only
P50,150.00 after the bank collected the advanced interest and an
additional amount of P850.00 for notarial and inspection fees. What
was the rate of simple interest that bank collected in advance?
17.65%
12. What will be the future worth of money after 12 months, if the sum if
the sum of P25,000.00 is invested today at simple interest rate of 1%
per month? P28,000.00
13. The amount of P12,800.00 in 4 years at 5% compounded quarterly is?

P15,614.59
14. A nominal interest of 3% compounded continuously is given on the
account. What is the accumulated amount of P10,000.00 after 10 years?
P13,498.59
15. A P500,000.00 was deposited at an interest of 6% compounded quarterly.

Compute the compound interest after 4 years and 9 months.
P163,475.37
16. A P200,000.00 was deposited for a period of 4 years and 6 months and
bears an interest of P85,649.25. What is the rate of interest if it
is compounded quarterly? 8%
17. How long will it take money to double itself if invested at 5%

compounded annually? 14.2 years
18. Compute the effective annual interest rate which is equivalent to 5%

nominal annual interest rate compounded continuously. 5.13%
19. Compute the difference in the future amount of P500.00 compounded
annually at a nominal rate of 5% and if it is compounded continuously
for 5 years at the same rate. P3.87
20. An amount of P 1000 becomes P 1608.44 after 4 years compounded

bi-monthly. Find the nominal rate of interest and the effective rate
of interest and the equivalent rate of interest if it is compounded
quarterly. 12% and 12.62% and 12.05%
21. A P200,000.00 was deposited on January 1, 1988 at an interest rate of

24% compounded semi-annually. How much would the sum be on January
1,1993? P621,169.64
22. What payment X ten years from now is equivalent to a payment of

P1,000 six years from now, if the interest is 15% compounded monthly?
P1,815.35
23. When compounded bi-monthly, P150,000 becomes P223,183 after 5 years.

What is the nominal rate of interest? 8%
------ END OF PLATE 1 -----

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Republic of the Philippines

DON HONORIO VENTURA STATE UNIVERSITY

Name: Score: _____

1. Show your complete and comprehensive solution.

1. What is the simple interest of 500 pesos at 12% annually within 5

3. A man is required to pay P57,500.00 in 15 days or P60,000.00 in 60

6. Determine the accumulated amount using exact simple interest on

8. A price tag of P150,000 is payable in 60 days. A 3% discount is

13. The amount of P12,800.00 in 4 years at 5% compounded quarterly is?

15. A P500,000.00 was deposited at an interest of 6% compounded quarterly.

17. How long will it take money to double itself if invested at 5%

18. Compute the effective annual interest rate which is equivalent to 5%

20. An amount of P 1000 becomes P 1608.44 after 4 years compounded

21. A P200,000.00 was deposited on January 1, 1988 at an interest rate of

22. What payment X ten years from now is equivalent to a payment of

23. When compounded bi-monthly, P150,000 becomes P223,183 after 5 years.

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