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MCQ in Engineering Economics Part 20 | ECE Board Exam

(Last Updated On: November 5, 2021)

MCQ in Engineering Economics Part 20 | ECE Board Exam

This is the Multiples Choice Questions Part 20 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 20 of the Series

MCQ in Engineering Economics Part 19 | ECE Board Exam

Choose the letter of the best answer in each questions.

951. P4,000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at the end of 75 days?

A. P4,133.33

B. P4,333.33

C. P4,166.67

D. P4,150.00

View Answer:

Answer: Option A

Explanation:

952. A deposit of P110,000.00 was made for 31 days. The net interest after deducting 20% withholding tax is P890.36. Find the rate of return annually.

A. 11.95%

B. 12.75%

C. 11.75%

D. 12.25%

View Answer:

Answer: Option C

Explanation:

953. Agnes Abanilla was granted a loan of P20,000 by her employer CPM Industrial Fabricator and Construction Corporation with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note.

A. P18,600

B. P18,800

C. P19,000

D. P19,200

View Answer:

Answer: Option B

Explanation:

954.What will be the future worth of money after 12 months, if the sum of P25,000 is invested today at simple interest rate of 1% per month?

A. P30,000

B. P29,000

C. P28,000

D. P27,859

View Answer:

Answer: Option C

Explanation:

955. If you borrowed money from your friend with simple interest of 12%, find the present worth of P50,000 which is due at the end of 7 months.

A. P46,200

B. P44,893

C. P46,730

D. P45,789

View Answer:

Answer: Option C

Explanation:

956. Annie buys a television set from a merchant who ask P1,250 at the end of 60 days. Annie wishes to pay immediately and the merchant offers to compute the cash price on the assumption that money is worth 8% simple interest. What is the cash price?

A. P1,233.55

B. P1,244.68

C. P1,323.66

D. P1,392.67

View Answer:

Answer: Option A

Explanation:

957. It is the practice of almost all banks in the Philippines that when they grant a loan. The interest for one year is automatically deducted from the principal amount upon the release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate?

A. 15.90%

B. 16.28%

C. 16.30%

D. 16.20%

View Answer:

Answer: Option B

Explanation:

958. A man borrowed P20,000 from a local commercial bank which has a simple interest rate of 16% but the interest is to be deducted from the loan at the time that the money was borrowed and the loan is payable at the end of one year. How much is the actual rate of interest?

A. 12%

B. 14%

C. 10%

D. 19%

View Answer:

Answer: Option D

Explanation:

959. A bank charges 12% simple interest on a P300.00 loan. How much will be repaid if the loan is paid back in one lump sum after three years?

A. P408.00

B. P415.00

C. P551.00

D. P450.00

View Answer:

Answer: Option A

Explanation:

960. A man borrowed P100,000 at the interest rate of 12% per annum, compounded quarterly. What is the effective rate?

A. 3%

B. 13.2%

C. 12%

D. 12.55%

View Answer:

Answer: Option D

Explanation:

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

A. 19.25%

B. 19.48%

C. 18.46%

D. 18.95%

View Answer:

Answer: Option B

Explanation:

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

A. Daily

B. Monthly

C. Bi-Monthly

D. Quarterly

View Answer:

Answer: Option D

Explanation:

963. A bank pays one percent interest on savings accounts four times a year. The effective annual interest rate is

A. 4.06%

B. 1.00%

C. 2.04%

D. 3.36%

View Answer:

Answer: Option A

Explanation:

964. The effective rate of 14% compounded semi-annually is

A. 14.49%

B. 12.36%

C. 14.94%

D. 14.88%

View Answer:

Answer: Option A

Explanation:

965. An interest rate is quoted as being 7.5% compounded quarterly. What is the effective annual interest rate?

A. 7.71%

B. 7.22%

C. 15.78%

D. 21.81%

View Answer:

Answer: Option A

Explanation:

966. The amount of P12,800 in 4 years at 5% compounded quarterly is

A. P14,785.34

B. P15,614.59

C. P16,311.26

D. P15,847.33

View Answer:

Answer: Option B

Explanation:

967. Find the present worth of a future payment of P100,000 to be made in 10years with an interest of 12% compounded quarterly.

A. P30,444.44

B. P33,000.00

C. P30,655.68

D. P30,546.01

View Answer:

Answer: Option C

Explanation:

968. On his 6th birthday a boy is left an inheritance. The inheritance will be paid in a lump sum of P10,000 on his 21st birthday. What is the present value of the inheritance as of the boy’s 6th birthday, if the interest is compounded annually? Assume i = 4%

A. P6,500

B. P8,600

C. P5,500

D. P7,500

View Answer:

Answer: Option C

Explanation:

969. The amount of P50,000 was deposited in the bank earning at interest of 7.6% 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. P72,475.23

C. P70,374.90

D. P78,536.34

View Answer:

Answer: Option A

Explanation:

970. Alexander Michael owes P25,000.00 due in 1 year and P75,000 due in 4 years. He agrees to pay P50,000 today and the balance in 2 years. How much must he pay at the end of two years if money is worth 5% compounded semi-annually?

A. P38,025.28

B. P35,021.25

C. P30,500.55

D. P39,021.28

View Answer:

Answer: Option D

Explanation:

971. At an interest rate of 10% compounded annually, how much will a deposit of P1,500 be in 15 years?

A. P6,100.00

B. P6,234.09

C. P 6,265.87

D. P6,437.90

View Answer:

Answer: Option C

Explanation:

972. How long (in years) will it take money to quadruple if it earns 7% compounded semi-annually?

A. 20.15

B. 26.30

C. 33.15

D. 40.30

View Answer:

Answer: Option A

Explanation:

973. In how many year is required for P2,000 to increase by P3,000 if interest at 12% compounded semi-annually?

A. 8

B. 9

C. 10

D. 7

View Answer:

Answer: Option A

Explanation:

974. Consider a deposit of P600.00 to be paid back in one year by P700.00. What are the conditions on the rate of interest, i% per year compounded annually such that the net present worth of the investment is positive? Assume i is greater than or equal to 0.

A. 0 ≤ i < 14.3%

B. 0 ≤ i < 16.7%

C. 12.5% ≤ i < 14.3%

D. 16.7% ≤ i < 100%

View Answer:

Answer: Option B

Explanation:

975. A company invests P10,000 today to be repaid in 5 year in one lump sum at 12% compounded annually. How much profit in present day pesos is realized?

A. P7,632

B. P7,236

C. P7,326

D. P7,362

View Answer:

Answer: Option A

Explanation:

976. 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?

A. P5,355.00

B. P5,892.00

C. P6,035.00

D. P6,135.00

View Answer:

Answer: Option C

Explanation:

977. A deposit of P1,000 is made in a bank account that pays 8% interest compounded annually. Approximately how much money will be in the account after 10 years?

A. P1,925.00

B. P1,860.00

C. P2,345.00

D. P2,160.00

View Answer:

Answer: Option D

Explanation:

978. P200,000 was deposited on January 1, 1988 at an interest rate of 24% compounded semi-annually. How much would the sum be on January 1,1993?

A. P401,170

B. P421,170

C. P521,170

D. P621,170

View Answer:

Answer: Option D

Explanation:

979. If P500,000 is deposited at a rate of 11.25% compounded monthly, determine the compounded interest after 7 years and 9 months.

A. P660,550

B. P670,650

C. P680,750

D. P690,850

View Answer:

Answer: Option D

Explanation:

980. 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 in this account?

A. 3.8%

B. 4.9%

C. 5.0%

D. 5.8%

View Answer:

Answer: Option D

Explanation:

981. If P5,000.00 shall accumulate for 10 years at 8% compounded quarterly, find the compounded interest at the end of 10 years.

A. P6,005.30

B. P6,000.00

C. P6,040.20

D. P6,010.20

View Answer:

Answer: Option C

Explanation:

982. 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. P706.00

B. P500.00

C. P774.00

D. P799.00

View Answer:

Answer: Option A

Explanation:

983. P1,500.00 was deposited in a bank account, 20 years ago. Today it is worth P3,000.00. Interest is paid semi-annually. Determine the interest rate paid on this account.

A. 3%

B. 2.9%

C. 3.5%

D. 4%

View Answer:

Answer: Option C

Explanation:

984. A merchant puts in his P2,000.00 to a small business for a period of six years. With a given interest rate on the investment of 15 % per year, compounded annually, how much will he collect at the end of the sixth year?

A. P4,400.00

B. P4,390.15

C. P4,200.00

D. P4,626.00

View Answer:

Answer: Option D

Explanation:

985. A man expects to receive P25,000 in 8 years. How much is that money worth now considering interest at 8% compounded quarterly?

A. P13,859.12

B. P13,958.33

C. P13,675.23

D. P13,265.83

View Answer:

Answer: Option D

Explanation:

986. P500,000 was deposited 20.15 years ago at an interest rate of 7% compounded semi-annually. How much is the sum now?

A. P2,000,000

B. P2,000,150

C. P2,000,300

D. P2,000,500

View Answer:

Answer: Option B

Explanation:

987. In year zero, you invest P10,000.00 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?

A. P12,020

B. P13,030

C. P14,040

D. P15,030

View Answer:

Answer: Option D

Explanation:

988. 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 the fund is invested at 8% compounded quarterly?

A. 7.98 years

B. 10.34 years

C. 11.57 years

D. 10.45 years

View Answer:

Answer: Option C

Explanation:

989. 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. You will pay P155.00 more if you borrowed from the bank.

B. You will save P55.00 by borrowing from your friend.

C. You will pay P85.00 more if you borrowed from the bank

D. You will pay P55.00 less if you borrowed from the bank.

View Answer:

Answer: Option D

Explanation:

990. What is the present worth of two P100 payments at the end of the third year and fourth year? The annual interest rate is 8%.

A. P153

B. P160

C. P162

D. P127

View Answer:

Answer: Option A

Explanation:

991. Anne purchased on monthly installment a P100,000 worth of land. The interest rate is 12% nominal and payable in 20 years. What is the monthly amortization?

A. P1,101.08

B. P1,121.01

C. P1,152.15

D. P1,128.12

View Answer:

Answer: Option B

Explanation:

992. Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is 12% compounded quarterly. How much was initially borrowed if quarterly payment is P2,000.00?

A. P10,834.38

B. P10,382.90

C. P10,586.99

D. P10,200.56

View Answer:

Answer: Option A

Explanation:

993. You need P4,000 per year for four years to go to college. Your father invested P5,000 in 7% account for your education when you were born. If you withdraw P4,000 at the end of your 17th, 18th, 19th and 20th birthday, how much will be left in the account at the end of the 21st year?

A. P1,700

B. P2,500

C. P3,400

D. P4,000

View Answer:

Answer: Option A

Explanation:

994. What is the accumulated amount of five year annuity paying P6,000 at the end of each year, with interest at 15% compounded annually?

A. P40,454.29

B. P41,114.29

C. P41,454.29

D. P40,544.29

View Answer:

Answer: Option A

Explanation:

995. How much must be deposited at 6% each year beginning on January 1, year 1, in order to accumulate P5,000 on the date of the last deposit, January 1, year 6?

A. P751.00

B. P717.00

C. P715.00

D. P725.00

View Answer:

Answer: Option B

Explanation:

996. A debt of P10,000 with 10% interest compounded semi-annually is to be amortized by semi-annual payment over the next 5 years. The first due is in 6 months. Determine the semi-annual payment.

A. P1,200.00

B. P1,295.05

C. P1,193.90

D. P1,400.45

View Answer:

Answer: Option B

Explanation:

997. A young engineer borrowed P10,000 at 12% interest and paid P2,000 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?

A. P6,919.28

B. P5,674.00

C. P6,074.00

D. P3,296.00

View Answer:

Answer: Option A

Explanation:

998. Mr. Cruz plans to deposit for the education of his 5 years old son, P500 at the of end each month for 10 years at 12% annual interest compounded monthly. The amount that will be available in two years is

A. P13,000

B. P14,500

C. P13,500

D. P14,000

View Answer:

Answer: Option C

Explanation:

999. If you obtain a loan of P1M at the rate of 12% compounded annually in order to build a house, how much must you pay monthly to amortize the loan within a period of ten years?

A. P13,994.17

B. P12,955.21

C. P15,855.45

D. P12,900.25

View Answer:

Answer: Option A

Explanation:

1000. How much must you invest today in order to withdraw P2,000 annually for 10 years if the interest rate is 9%?

A. P12,853.32

B. P12,881.37

C. P12,385. 32

D. P12,835.32

View Answer:

Answer: Option D

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

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

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