MCQ in Engineering Economics Part 7 | ECE Board Exam

(Last Updated On: March 29, 2021)

MCQ in Engineering Economics Part 7 | ECE Board Exam

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.

Continue Practice Exam Test Questions Part 7 of the Series

MCQ in Engineering Economics Part 6 | ECE Board Exam

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%

View Answer:

Answer: Option C

Explanation:

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

View Answer:

Answer: Option D

Explanation:

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%

View Answer:

Answer: Option C

Explanation:

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%

View Answer:

Answer: Option C

Explanation:

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

A. 1.61607

B. 1.24532

C. 1.24282

D. 0.24245

View Answer:

Answer: Option A

Explanation:

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

A. 1.249347

B. 1.243248

C. 1.214359

D. 0.616783

View Answer:

Answer: Option D

Explanation:

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

View Answer:

Answer: Option C

Explanation:

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

View Answer:

Answer: Option C

Explanation:

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

View Answer:

Answer: Option D

Explanation:

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%

View Answer:

Answer: Option C

Explanation:

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

View Answer:

Answer: Option C

Explanation:

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

View Answer:

Answer: Option B

Explanation:

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

View Answer:

Answer: Option A

Explanation:

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

View Answer:

Answer: Option C

Explanation:

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%

View Answer:

Answer: Option A

Explanation:

316. What is the actual rate of interest?

A. 8.00%

B. 7.00%

C. 8.24%

D. 7.96%

View Answer:

Answer: Option C

Explanation:

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%

View Answer:

Answer: Option D

Explanation:

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

View Answer:

Answer: Option D

Explanation:

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

View Answer:

Answer: Option C

Explanation:

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

View Answer:

Answer: Option B

Explanation:

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%

View Answer:

Answer: Option A

Explanation:

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

View Answer:

Answer: Option A

Explanation:

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

View Answer:

Answer: Option D

Explanation:

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%

View Answer:

Answer: Option A

Explanation:

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%

View Answer:

Answer: Option D

Explanation:

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%

View Answer:

Answer: Option D

Explanation:

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%

View Answer:

Answer: Option B

Explanation:

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

A. 7.24%

B. 7.92%

C. 8.24%

D. 8.87%

View Answer:

Answer: Option C

Explanation:

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%

View Answer:

Answer: Option B

Explanation:

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

View Answer:

Answer: Option A

Explanation:

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

View Answer:

Answer: Option D

Explanation:

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

View Answer:

Answer: Option B

Explanation:

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

View Answer:

Answer: Option B

Explanation:

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

View Answer:

Answer: Option A

Explanation:

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%

View Answer:

Answer: Option A

Explanation:

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

View Answer:

Answer: Option D

Explanation:

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%

View Answer:

Answer: Option B

Explanation:

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%

View Answer:

Answer: Option D

Explanation:

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%

View Answer:

Answer: Option A

Explanation:

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%

View Answer:

Answer: Option C

Explanation:

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

View Answer:

Answer: Option B

Explanation:

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

View Answer:

Answer: Option B

Explanation:

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

View Answer:

Answer: Option C

Explanation:

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

A. 14.49%

B. 14.94%

C. 14.36%

D. 14.88%

View Answer:

Answer: Option A

Explanation:

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

View Answer:

Answer: Option A

Explanation:

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%

View Answer:

Answer: Option D

Explanation:

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%

View Answer:

Answer: Option A

Explanation:

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

A. 19.23%

B. 14.67%

C. 23.56%

D. 11.83%

View Answer:

Answer: Option D

Explanation:

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%

View Answer:

Answer: Option C

Explanation:

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

View Answer:

Answer: Option B

Explanation:

Online Questions and Answers in Engineering Economics Series

Following is the list of practice exam test questions in this brand new series:

Engineering Economics MCQs
PART 1: MCQ from Number 1 – 50                        Answer key: PART 1
PART 2: MCQ from Number 51 – 100                   Answer key: PART 2
PART 3: MCQ from Number 101 – 150                 Answer key: PART 3
PART 4: MCQ from Number 151 – 200                 Answer key: PART 4
PART 5: MCQ from Number 201 – 250                 Answer key: PART 5
PART 6: MCQ from Number 251 – 300                 Answer key: PART 6
PART 7: MCQ from Number 301 – 350                 Answer key: PART 7
PART 8: MCQ from Number 351 – 400                 Answer key: PART 8
PART 9: MCQ from Number 401 – 450                 Answer key: PART 9
PART 10: MCQ from Number 451 – 500                 Answer key: PART 10/a>

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

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