Engineering Econ (Examveda)- Calculations

Law of diminishing return

"When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output". This statement is known as the:

P 1,144.81

A P 1, 000, 6% bond pays dividend semiannually and will be redeemed at 110% on June 21, 204. It is bought on June 21, 2001 to yield 4% interest. Find the price of the bond.

4.00 %

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?**

P 2,504.57

A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

29.17 %

A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.

P 3,260.34

A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?

Sole proprietorship

A form of business organization in and the which a person conducts his business alone and entirely for his own profit, being solely responsible for all its activities and liabilities.

12.07 %

A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

2,632

A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even?

9.14 %

A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money?

5,937.50

A loan of P5,000 is made for a period of 15 months, at a simple interest rate of 15%, what future amount is due at the end of the loan period?**

P 2,000.00

A machine costs of P 8,000 and an estimated life of 10 years with a salvage value of P 500. What is its book value after 8 years using straight line method?

1,053

A manufacturer produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 2.32 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000

P 143,999.08

A person buys a piece of lot for P 100,000 downpayment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?

P2,117

A savings bank offers long-term savings certificate at 7.5% per year compounded continuously. If a 10-year certificate costs P1,000, what will be its value at maturity?

P1,549.64

A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%.

P705.42

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?

Annuity

A uniform series of payment occurring at equal interval of time is called:

P 6,922.93 (P 6,917.72)

A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan?

9 years

ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

12.00 %

An amount of P1,000 becomes P1,608.44 after 4 years compounded bimonthly. Find the nominal interest.*

P 3,927.27

An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method**

11.57 years

By the condition of a will, the sum of P20,000 is left to a girl to be held in trust fund by her guardian until it amounts to P50,000. When will the girl receive the money if fund invested at 8% compounded quarterly?

2.24

Compute the present worth index (profitability index, benefit-cost ratio) of a certain investment of the Phil. Rock Corporation. Investment = P30,000 Annual Net Savings = P12,600 Useful life, n = 9 year Marr = 12%

25.0 %

Engr. Trinidad loans from a loan firm an amount of P100,000 with a rate of simple interest of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, she has to pay the full amount of P100,000, what is the actual rate of interest?

21 %

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?

14.2 years

How long will it take money to double itself if invested at 5% compounded annually?

(1 + i)^n

If 'P' is principal amount, 'I' is the rate of interest per annum and 'n' is the number of periods in years, the compound amount factor (CAF) is:

(1 + i/m)^n

If interest is paid more than once in a year, 'i' is the rate of interest per year, 'n' is the number of periods in years and 'm' is a number of periods per years, compound amount factor (CAF) is:

Monopoly

If there is only one seller and many buyers, the market situation is ________ .*

Sinking fund method

In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes?

Declining balance method

In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year?

P 15,030.03

In year zero, you invest P 10,000.00 in a 15% security for 5 years. During that time, the average annual inflation is 6%. How much in terms of year zero pesos will be in the account at maturity?

Fixed asset

Lands, buildings, plants and machineries are example of what type of asset?

Quarterly

Mandarin Bank advertises 9.5% account that yields 9.84% annually. Find how often the interest is compounded.

P 4,860.00

Miss Calledo deposited P 1,000, P 1,500 and P 2,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 10% per annum. How much is in the account at the end of the 4th year?

13.73 %

Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the "banker's discount".**

10.29 %

Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest.*

P44,129

Mr. Jonel deposits P12,000 now, P8,000 two years from now and P10,000 five years from now. If the savings bank's rate of interest in 5%, he will receive an amount of X, 10 years from now, where 'X' is

All the above

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

P 9,250.00

Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%.**

Both (A) and (B)

The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where A. 8% is the rate of interest per year B. Money is borrowed for n = 7 years C. Both (A) and (B) D. Neither (A) nor (B)

$ 5,000,000.00

The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

Dividend

The amount of company's profit that the board of directors of the corporation decides to distribute to ordinary shareholders is called ______.

Market value

The amount of property in which a willing buyer to a willing seller for the property when neither one is under the compulsion to buy nor to sell is called ______.*

3.90 %

The exact simple interest of P5,000 invested from June 21, 1995 to December 25, 1995 is P100. What is the rate of interest?

Exact simple interest

The interest calculated on the basis of 365 days a year, is known as:

12 months

The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now?

1

The product of CAF (S P) and PWF (S P) is: CAF-Compound Amount Factor; PWF- Present Worth Factor

P79,086

The repair costs for some handheld equipment in the office of NAIA is estimated to be P12,000 for the first year, increasing by P3,000 per year in subsequent years. Determine the amount that the office will need to deposit into a bank account paying 4% interest, to provide the repair cost for the next 5 years. Uniform-Series present worth factor, (P/A, 4%, 5) = 4.4518 Sinking fund factor (A/F, 4%, 5) = 0.1846 Capital recovery factor (A/P, 4%, 5) = 0.2246 Gradient series present worth factor (P/G, 4%, 5) = 8.55

360

Under ordinary simple interest, how many days in one year?

Fixed percentage of gross income or 50% of the net taxable income

Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ______ whichever is smaller.

P 1,185.54

What annuity is required over 12 years to equate with a future amount of P20,000? Assume i= 6% annually.

Buyer or consumer

What is considered as the basic consuming or demanding unit of a commodity?*

Bond

What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund?*

19.72 %

What is the effective rate corresponding to 18% compounded daily? Take 1 year is equal to 360 days.

Single payment present worth

What is the factor name of the formula (1+i)^-n?

Capital gain

What is the increase in the money value of a capital asset is called?

P39.45

What is the ordinary interest on P1,500.50 for 182 days at 5.2%?

P 717.17

What is the present worth of a P500 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 10 %?

Capital loss

What is the reduction in the money value of capital asset is called?

8.24 %

What rate of interest compounded annually is the same as the rate of interest of 8% compounded quarterly?*

Interest

What refers to the amount of money paid for the use of borrowed capital?

11.60 % compounded annually

Which of these gives the lowest effective rate of interest?