MCQs in Engineering Economics Part VII

(Last Updated On: December 8, 2017)

MCQs in Engineering Economics Part 7

This is the Multiples Choice Questions Part 7 of the Series in Engineering Economics as one of the General Engineering and Applied Sciences (GEAS) topic. In Preparation for the ECE Board Exam make sure to expose yourself and familiarize in each and every questions compiled here taken from various sources including past Board Questions in General Engineering and Applied Sciences (GEAS), Engineering Economy Books, Journals and other Engineering Economy References.

Online Questions and Answers in Engineering Economics Series

Following is the list of multiple choice questions in this brand new series:

Engineering Economics MCQs
PART 1: MCQs from Number 1 – 50                        Answer key: PART I
PART 2: MCQs from Number 51 – 100                   Answer key: PART II
PART 3: MCQs from Number 101 – 150                 Answer key: PART III
PART 4: MCQs from Number 151 – 200                 Answer key: PART IV
PART 5: MCQs from Number 201 – 250                 Answer key: PART V
PART 6: MCQs from Number 251 – 300                 Answer key: PART VI
PART 7: MCQs from Number 301 – 350                 Answer key: PART VII
PART 8: MCQs from Number 351 – 400                 Answer key: PART VIII
PART 9: MCQs from Number 401 – 450                 Answer key: PART IX
PART 10: MCQs from Number 451 – 500                 Answer key: PART X

Continue Practice Exam Test Questions Part VII of the Series

Choose the letter of the best answer in each questions.

301. Find the value of x, (F/P, x, 6) if F/P compounded quarterly is equal to 1.612226.

  • A. 7%
  • B. 5%
  • C. 8%
  • D. 6%

302. Find the value of y, (P/F, 6%, y) if P/F compounded bi-monthly is equal to 0.787566.

  • A. 7 years
  • B. 5 years
  • C. 6 years
  • D. 4 years

303. Find the rate of interest if compound amount factor compounded bi-monthly for 5 years is equal to 1.487887.

  • A. 7%
  • B. 5%
  • C. 8%
  • D. 6%

304. Compute the nominal rate for a period of 6 years for an effective rate of 8.33% if it is compounded continuously.

  • A. 7%
  • B. 5%
  • C. 8%
  • D. 6%

305. Compute the equivalent compound amount factor if it is compounded continuously.

  • A. 1.61607
  • B. 1.24532
  • C. 1.24282
  • D. 0.24245

306. Compute the equivalent present worth factor if it is compounded continuously.

  • A. 1.249347
  • B. 1.243248
  • C. 1.214359
  • D. 0.616783

307. A man loan P2000 from the bank. How long would it take in years for the amount of the loan and interest to equal P3280 if it was made at 8% simple interest.

  • A. 7 years
  • B. 5 years
  • C. 8 years
  • D. 6 years

308. A man loan P2000 from the bank. How long would it take in years if it was made at 8% compounded quarterly.

  • A. 5.25 years
  • B. 7.25 years
  • C. 6.25 years
  • D. 8.25 years

309. A man loan P2000 from the bank. How long would it take in years if it was made at 8% compounded continuously.

  • A. 7.18 years
  • B. 5.18 years
  • C. 8.18 years
  • D. 6.18 years

310. An amount of P1000 becomes P1608.44 after 4 years compounded bi-monthly. Find the nominal rate of interest, the effective rate of interest, and the equivalent rate of interest if it is compounded quarterly.

  • A. 11% ; 12.623% ; 11.42%
  • B. 12% ; 11.06% ; 12.724%
  • C. 12% ; 12.616% ; 12.06%
  • D. 11% ; 11.664% ; 11.93%

311. How long would it take your money to double itself if it is invested at 6% simple interest, compounded semi-quarterly, and compounded continuously?

  • A. 12.67 yrs ; 11.2 yrs ; 15.05 yrs
  • B. 18.67 yrs ; 11.6 yrs ; 11.24 yrs
  • C. 16.67 yrs ; 11.6 yrs ; 11.55 yrs
  • D. 17.67 yrs ; 10.2 yrs ; 11.45 yrs

For problems 312 – 314:

An amount of P50,000 was invested for 3 years.

312. Compute its interest at the end of 3 years if it is invested at 10% simple interest.

  • A. P16,550.00
  • B. P15,000.00
  • C. P17,492.94
  • D. P14,242.15

313. Compute for its compound interest if it is invested at 10% compounded annually.

  • A. P16,550.00
  • B. P15,000.00
  • C. P17,492.94
  • D. P14,242.15

314. Compute its interest if it is invested at 10% compounded continuously.

  • A. P16,550.00
  • B. P15,000.00
  • C. P17,492.94
  • D. P14,242.15

For Problems 315 – 317:

P200,000 was deposited for a period of 4 yrs. And 6 months and bears on interest of P85,659.25.

315. What is the nominal rate of interest if it is compounded quarterly?

  • A. 8.00%
  • B. 7.00%
  • C. 8.24%
  • D. 7.96%

316. What is the actual rate of interest?

  • A. 8.00%
  • B. 7.00%
  • C. 8.24%
  • D. 7.96%

317. What is the equivalent nominal rate if it is compounded semi-quarterly?

  • A. 8.00%
  • B. 7.00%
  • C. 8.24%
  • D. 7.96%

318. What is the value of (F/P, 8%, 6) if it is compounded semi-quarterly.

  • A. 0.524273541
  • B. 1.487886717
  • C. 0.787566127
  • D. 1.612226000

319. What is the value of (P/F, 6%, 4) if it is compounded bi-monthly.

  • A. 0.524273541
  • B. 1.487886717
  • C. 0.787566127
  • D. 1.612226000

320. What is the single payment compound amount factor for 8% compounded bi-monthly for 5 years.

  • A. 0.524273541
  • B. 1.487886717
  • C. 0.787566127
  • D. 1.612226000

For Problems 321 – 323:

If money is invested at a nominal rate of interest of 8% for a period of 4 years.

321.) What is the effective rate if it is compounded continuously?

  • A. 8.33%
  • B. 9.33%
  • C. 8.93%
  • D. 9.93%

322.) What is the value of the compound amount factor if it is compounded continuously?

  • A. 1.377128
  • B. 1.424231
  • C. 0.214212
  • D. 0.122416

323. What is the value of the present worth factor if it is compounded continuously?

  • A. 1. 272441
  • B. 0.272441
  • C. 1.726419
  • D. 0.726149

324. If the single payment amount factor for a period of 5 years is 1.33822, what is the nominal rate of interest?

  • A. 6.00%
  • B. 7.00%
  • C. 6.92%
  • D. 7.92%

325. What is the effective rate of interest if it is compounded semi-annually of problem no. 324?

  • A. 5.00%
  • B. 7.24%
  • C. 6.92%
  • D. 6.09%

326. What is the equivalent nominal rate if it is compounded quarterly of problem no. 324?

  • A. 6.12%
  • B. 4.24%
  • C. 5.43%
  • D. 5.87%

327. Money was invested at x% compounded quarterly. If it takes money to quadruple in 17.5 years, find the value of x.

  • A. 6.23%
  • B. 8.00%
  • C. 5.92%
  • D. 9.78%

328.) What is the actual interest rate of problem no. 327?

  • A. 7.24%
  • B. 7.92%
  • C. 8.24%
  • D. 8.87%

329.) What is the equivalent rate if problem no. 327 is compounded daily?

  • A. 7.24%
  • B. 7.92%
  • C. 8.24%
  • D. 8.87%

For Problems 330 – 332:

A businessman loaned P500,000 from a local bank that charges an interest rate of 12%.

330. How much is he going to pay at the end of 5 years if it was made at 12% simple interest?

  • A. P800,000.00
  • B. P911,059.20
  • C. P823,243.09
  • D. P907,009.21

331. How much is he going to pay at the end of 5 years if it was made at 12% compound semi-quarterly?

  • A. P800,000.00
  • B. P911,059.20
  • C. P823,243.09
  • D. P907,009.21

332. How much is he going to pay at the end of 5 years if it was made at 12% compound continuously?

  • A. P800,000.00
  • B. P911,059.20
  • C. P823,243.09
  • D. P907,009.21

333. P60,000 was deposited at 6% compounded quarterly, tax free for 9 years and 3 months. How much interest was earned at the end of the period?

  • A. P43,214.24
  • B. P44,086.60
  • C. P43.242.24
  • D. P44,215.60

334. P100,000 was placed in a time deposit which earned 9% compounded quarterly tax free. After how many years would it be able to earn a total interest of P50,000?

  • A. 4.56 years
  • B. 3.45 years
  • C. 4.23 years
  • D. 3.64 years

335. P200,000 was placed in a time deposit at x% compounded quarterly and was free of taxes. After exactly 5 years, the total interest earned was P120,000. What is the value of x?

  • A. 9.5%
  • B. 6.35%
  • C. 8.21%
  • D. 7.12%

336. Which of these gives the lowest effective rate of interest?

  • A. 12.35% compounded annually
  • B. 12.2% compounded quarterly
  • C. 11.9% compounded semi-annually
  • D. 11.6% compounded monthly

337. It takes 20.15 years to quadruple your money if it is invested at x% compounded semi-annually. Find the value of x.

  • A. 8%
  • B. 7%
  • C. 6%
  • D. 5%

338. It takes 13.87 years to treble the money at the rate of x% compounded quarterly. Compute the value of x.

  • A. 5%
  • B. 7%
  • C. 6%
  • D. 8%

339. Money was invested at x% compounded quarterly. If it takes the money into quadruple in 17.5 years, find the value of x.

  • A. 8%
  • B. 7%
  • C. 6%
  • D. 5%

340. Fifteen years ago P1,000.00 was deposited in a bank account, and today it is worth P2.370.00. The bank pays interest semi-annually. What was the interest rate paid on this account?

  • A. 4.9%
  • B. 5.0%
  • C. 5.8%
  • D. 3.8%

341. You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. Compare how much money you will save or lose on the transaction.

  • A. pay P155 more if you borrowed from the bank
  • B. save P55 by borrowing from your friend
  • C. pay P85 more if you borrowed from the bank
  • D. save P95 by borrowing from your friend

342. Find the present worth of a future payment of P1000,000 to be made in 10 years with an interest of 12% compounded quarterly.

  • A. P30,444.44
  • B. P30,655.68
  • C. P33,000.00
  • D. P30,546.01

343. An initial savings deposit of P80,000 in a certain bank earns 6% interest per annum compounded monthly. If the earnings from the deposit are subject to a 20% tax, what would the net value of the deposit be after three quarters?

  • A. P95,324.95
  • B. P68743.24
  • C. P82938.28
  • D. P56244.75

344. The effective rate of interest of 14% compounded semi-annually is:

  • A. 14.49%
  • B. 14.94%
  • C. 14.36%
  • D. 14.88%

345. The amount of P50,000 was deposited in a bank earning an interest of 7.5% per annum. Determine the total amount at the end of 5 years, if the principal and interest were not withdrawn during the period.

  • A. P71,781.47
  • B. P70,374.90
  • C. P72,475.23
  • D. P78,536.34

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

  • A. 18.35%
  • B. 18.10%
  • C. 19.39%
  • D. 19.72%

347. If P1,000 becomes P1,126.49 after 4 years when invested at a certain nominal rate of interest compounded semi-annually, determine the nominal rate and the corresponding effective rate.

  • A. 3.00% and 3.02%
  • B. 2.30% and 2.76%
  • C. 4.29% and 4.32%
  • D. 3.97% and 3.95%

348. Convert 12% semi-annually to compounded quarterly.

  • A. 19.23%
  • B. 14.67%
  • C. 23.56%
  • D. 11.83%

349. What is the corresponding effective interest rate of 18% compounded semi-quarterly?

  • A. 19.25%
  • B. 18.46%
  • C. 19.48%
  • D. 18.95%

350.) If P5000 shall accumulate for 10 years at 8% compounded quarterly, find the compounded interest at the end of 10 years.

  • A. P6,005.30
  • B. P6,040.20
  • C. P6,000.00
  • D. P6,010.20

Complete List of MCQs in General Engineering and Applied Science per topic

MCQs in Engineering Economics Part VII
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