Problem Sets Ce Review 2014

ENGINEERING ECONOMICS SET 1

simple interest of 6 % per ann"m Ans. P30,000.00

SIMPLE INTEREST 

1. Find Find the the intere interest st on P6800.00 for 3 years at 11 % simple interest. Ans. P2,244.00 2. A man man borr borrow owed ed P10,000.00 from his friend and arees to pay at the end of !0 days "nder 8 % simple interest rate. #hat is the re$"ired amo"nt Ans. P10,200.00 3. Annie b"ys a tele&is tele&ision ion set from a mer'hant who o(ers P2),000.00 at the end of 60 days. Annie wishes to pay immediately and the mer'hant o(ers to 'omp"te the re$"ired amo"nt on the ass"mption that money is worth 14 % simple interest. #hat is the re$"ired amo"nt Ans. P24,42!.!* 4. #hat is the prin'ipal prin'ipal amo"nt if the amo"nt of interest at the end of  2 + year is P4)00 for a

). ow lon lon m"st m"st a P40, P40,000 000 note bearin 4 % simple interest r"n to amo"nt to P41,3)0.00 Ans. 304 days 6. -f P16,000 P16,000 earns earns P480 P480 in ! months, what is the ann"al rate of interest Ans. 4% *. A time time depo deposit sit of of P110,000 for 31 days earns P8!0.3! on mat"rity date after ded"'tin the 20 % withholdin ta on interest in'ome. Find the rate of interest per ann"m. Ans. 11.*) % 8. A ban/ ban/ 'har 'hares es 12 % simple interest on a P300.00 loan. ow m"'h will be repaid if the load is paid ba'/ in one l"mp s"m after three years. Ans. P408.00 !. A pri'e pri'e ta ta of P1200 P1200 is is spe'ied if paid within 60 days b"t o(ers a 3 % dis'o"nt for 'ash in 30

days. Find the rate of interest. Ans. 3*.11 % 10.-t is the pra'ti'e of almost all ban/ in the Philippines that when they rant a loan, the interest for one year is a"tomati'ally ded"'ted from the prin'ipal amo"nt "pon release on money to a borrower. et "s therefore ass"me that yo" applied for a loan with a ban/ and the P80000 was appro&ed at an interest rate of 14 % of whi'h P11200 was ded"'ted and yo" were i&en a 'he'/ of P68800. in'e yo" ha&e to pay the amo"nt of P80000 one year after, what then will be the e(e'ti&e interest rate Ans. 16.28 % 11.r. . de la 5r" borrowed money from a ban/. e re'ei&ed from the ban/ P1,340.00 and promised to pay P1,)00.00 at the end of ! months. 7etermine the simple interest rate and the 'orrespondin dis'o"nt rate or often

referred to as the 9an/ers dis'o"nt:. Ans. 1).!2 % ; 13.*3 % 12.A man borrowed borrowed from a ban/ "nder a promissory note that he sined in the amo"nt pf P2),000.00 for a period of one year. e re'ei&ed only the amo"nt of P21,!1).00 after the ban/ 'olle'ted the ad&an'e interest and an additional amo"nt of P8).00 for notarial and inspe'tion fees. #hat was the rate of interest that the ban/ 'olle'ted in ad&an'e Ans. 13.64 % 13.Anes Abanilla was ranted a loan of P20,000 by her employer 5P -nd"strial Fabri'ator and 5onstr"'tion 5orporation with an interest at 6 % for 180 days on the prin'ipal 'olle'ted in ad&an'e. n ar'h 1, 1!!6 r. Almaro obtains a loan of  P1)00 from r. Abella and sins a note promisin to pay the prin'ipal and a''"m"lated simple interest at the rate of ) % at the end of 120 days.

>n ay 1), 1!!6, r. Abella dis'o"nts the note at the ban/ whose dis'o"nt rate is 6 %. #hat does he re'ei&ed Ans. P1)13.)6 21.A deposit of P110,000 was made for 31 days.