An amount of P1,000 becomes P1,608.44 after 4 years compounded bimonthly. Find the nominal interest.
A. 11.89 %
B. 12.00 %
C. 12.08 %
D. 12.32 %
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Mr. David deposits Rs 1200 now, Rs 800 two years from now and Rs 1000 five years from now. If the savings bank's rate of interest in 5%, he will receive an amount of Rs X, 10 years from now, where ‘X’ is
A. Rs. 3415
B. Rs. 4225
C. Rs. 4413
D. Rs. 4826
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The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodical payments, is known as;
A. Present Worth Annuity
B. Sinking fund annuity
C. Compound annuity
D. Capital recovery annuity
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What is defined as the interest on a load or principal that is based only on the original amount of the loan or principal?
A. Effective rate of interest
B. Nominal rate of interest
C. Compound interest
D. Simple interest
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What type of bond whose guaranty is in lien on railroad equipment, such as freight and passenger cars, locomotives, etc.?
A. Railroad bond
B. Equipment obligation bond
C. Equipment bond
D. Equipment trust bond
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What are the two classifications of goods and services?
A. Local and imported
B. Raw and finished
C. Consumer and producer
D. Ready-made and made-to-order
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What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation?
A. Bond
B. T-bills
C. Stock
D. Promissory note
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In case of bankruptcy of a partnership,
A. The partners are not liable for the liabilities of the partnership
B. The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities
C. The partners personal assets are attached to the debt of the partnership
D. The partners nay sell stock to generate additional capital
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A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year?
A. P693.12
B. P700.12
C. P702.15
D. P705.42
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What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community?
A. Annual cost method
B. Benefit-cost ratio
C. Rate of return method
D. EUAC
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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?
A. Return of investment
B. Interest rate
C. Yield
D. Rate of return
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First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes?
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The construction estimate of a project is used by:
A. The owner of the facility
B. The consulting architect/engineer
C. The contractor of the project
D. All of these
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Pick up the correct statement regarding financial statement analysis from the following.
A. Final analysis always involves the use of various financial statements i.e., balance sheet and income statement
B. The balance sheet is the summary of assets, liabilities and owner's equity of business at a point in time
C. The income statement is the summary of revenues and expenses of a firm over a particular period of time
D. All the above
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Pick up the correct statement from the following:
A. A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed
B. In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project
C. As the discount rate increases, the net present value profile slopes downward to the right
D. All of these
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Pick up the correct statement from the following:
A. An annuity is a series of equal payments occurring at equal period of time
B. Annuity is called an equal payment or uniform payment series
C. An annuity may have periods of time of any length but should always be of equal length
D. All the above
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Pick up the correct method adopted for developing the approximate or conceptual estimates from the following:
A. Base unit method
B. Cost per function method
C. Cost per square metre
D. All of these
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Pick up the element of the cost from the following:
A. Direct material
B. Direct labour
C. Over head
D. All of these
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Pick up the correct statement from the following:
A. Engineering economy is a collection of mathematical techniques which simplify economic comparisons
B. Engineering economy is a decision assistance tool by which one method will be chosen as the most economically one
C. For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy
D. All of these
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Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:
A. Liquidity ratio
B. Financial leverage ratio
C. Activity ratio
D. None of these
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