Mary Our Help

TECHNICAL INSTITUTE FOR WOMEN (CEBU), INC.

E-231 – Engineering Economics

Midterm Examination
4th Quarter Term – A.Y. 2021-2022

Name: ______________________ Course/Year: _____________ Date: _______ Score: _____/100

Test I – Multiple Choice. Choose the letter of the best answer in each questions.(20pts)
c. Law of demand
1) Defined as the analysis and evaluation of the d. Law of supply and demand
monetary consequences by using the 6) Under ordinary simple interest, how many
theories and principles of economics to days are there in one year?
engineering applications, designs and a. 300
projects b. 360
a. Economic Analysis c. 365
b. Engineering economy d. 366
c. Engineering cost analysis 7) Refers to the amount of money paid for the
d. Design cost analysis use of borrowed capital
2) Market situation that exists when there are a. Interest
many buyers and many sellers b. Rate of interest
a. Perfect competition c. Simple interest
b. Oligopoly d. Complex Interest
c. Oligopsony 8) Payment occurring at equal interval of time
d. Monopoly _____.
3) Oligopoly exists when there is/are a. Amortization
a. Few sellers and few buyers b. Annuity
b. Few sellers and many buyers c. Depreciation
c. Many sellers and few buyers d. Bond
d. One seller and few buyers 9) The cost of borrowing money or the amount
4) A need, want or desire for a product backed earned by a unit principal per unit time
by the money to purchase it a. Yield rate
a. Supply b. Rate of return
b. Demand c. Rate of interest
c. Product d. Economic return
d. Good 10) It is computed by adding the previous and
5) “Under conditions of perfect competition, current interest of the loan or principal plus
the price at which any given product will be its previous accumulated interest
supplied and purchased is the price that will a. Effective rate of interest
result in the supply and the demand being b. Nominal rate of interest
equal.” This statement is known as the: c. Compound interest
a. Law of diminishing return d. Simple interest
b. Law of supply
 Mary Our Help
TECHNICAL INSTITUTE FOR WOMEN (CEBU), INC.

II Solve the following problems. Show all solutions. (80pts)

1) A man borrowed P50,000 from his friend and agrees to pay at the end of 180 days under 11% simple
interest rate. What is the required amount?
2) How long will it take P1,000 to amount to P1,346 if invested at 10% compounded monthly?
3) An interest rate of 8% compounded semiannually is how many percent if compounded bi-monthly?
4) What rate (%) compounded quarterly is equivalent to 4% compounded semi-annually?
5) The salary of Mr. Concepcion is increased by 30% every 2 years beginning January 1, 1982. Counting from
that date, at what year will his salary just exceed twice his original salary.
6) A student has money given by his grandfather in the amount of P20,000. How much money will he get if
the money is put in a bank that offers 8% rate compounded annually, at the end of 10 years
7) A man wishes his son to receive P500,000 ten years from now, what amount should heinvest now if it will
earn interest of 12% compounded annually during the first 5 years and 15% compounded quarterly during
the next 5 years?
8) A student deposits P3,500 in a 9% account today. He intends to deposit another P3,000 at the end of two
years. He plans to purchase a Macbook in ten years worth P50,000. Calculate the money that will be left
in his account one year after the purchase.