Republic of the Philippines

CAVITE STATE UNIVERSITY

Don Severino de las Alas Campus
Indang, Cavite

COLLEGE OF ENGINEERING AND INFORMATION TECHNOLOGY

Department of Civil Engineering

Please remember to put your name, section, student number and the date at the top of your
paper. Scan your paper properly. Work all problems using BLACK PEN on ANY bond paper.
Your writing should be NEAT and LEGIBLE. All answers should be compiled and uploaded in a
single pdf file.
File name format:
Subject Code_Assignment 5_Student Number.pdf

Assignment No. 5

INSTRUCTIONS: Copy the problems and solve completely.

1. As a rental for a building, the owner received two offers:

(A) P50000 a year for 8 years, the rental for each year paid at the start of the year
(B) P30000 the first year, P40000 the second year, P50000 the third year, and P60000 for
the next 5 years with all rentals paid at the beginning of each year.

If money is worth 12%, which is the better offer?

2. To maintain a bridge, P5,000 will be required at the end of 3 years and annually thereafter. If
money is worth 8%, determine the capitalized cost of all future maintenance.

3. Compare the capitalized costs of the following penstocks for a hydro-electric plant with
interest at 10%:
Timber Steel
First Cost P50,000 P80,000
Estimated Life 10 years 30 years
Scrap Value P2,000 NONE
Annual Maintenance P1,200 P200

4. A debt of P100,000 is to be discharged by ten semi-annual payments, the first to be made 6

months after the loan is given. The debt will be discharged by 5 equal payments each
P10,000 and by other 5 equal payments of such amount that the final payment will liquidate
the debt. If interest is 12% compounded semi-annually, what is the amount of the last 5
payments? Construct an amortization schedule.