Professional Documents
Culture Documents
HAU Correl
HAU Correl
CORRELATION COURSE
Module 2
b. How many triangles can be A coin is so unbalanced that you are likely Find the ordinary simple interest on ₱1,
drawn? to get two heads in two successive throws 500.00 for 4 months and 20 days at an
as you are to get tails in one. What is the interest rate of 5%.
PROBLEM 11: probability of getting heads in a single
An urn contains 4 red and 5 blue balls. throw? COMPOUND INTEREST- interest is
Compute how many ways can we draw A. .667 C. .5 computed every end of each interest
from the urn B. .618 D. .8123 period and the interest earned for that
a. Exactly 3 blue balls period is added to the principal.
b. Exactly 2 blue balls and 1 red ball PROBLEM 15:
c. If 4 balls are drawn, compute the Box A contains 5 red cars and 3 white Key formulas:
number of ways selecting at least card, and Box B contains 2 red cards and 6 n
F=P ( 1+i )
3 blue balls. white cards.
a. If a card is drawn from each box, what Convert Nominal Rate to Effective Rate:
PROBABILITY is the probability that they are both of By 1 Peso – 1 Year Analysis
- it is the level of expectation in number the same color.
( )
m
form (from 0% to 100%) that certain A. 7/16 C. 45/1024 ( 1+i )1 year = 1+ j
outcome will happen. A probability of zero B. ¾ D. ½ m
(0) means that surely, said outcome will m = number of nominal periods per year
not happen, while a probability of 100% b. If two cards are drawn from each box,
indicates that said outcome will surely what is the probability that all four cards Take Note!
happen. are the same color. Compounded… Value of m
D A. 55/78 C. 59/784 Annually 1
Probability= B. 57/78 D. 61/784 Semi-Annually 2
T
No. of D esired outcome Quarterly 4
P= PROBLEM 16: Bi-Monthly 6
T otal no. of possible outcomes A food inspector examined a random Monthly 12
sample of 15 cans of a certain tuna brand Convert Discounted Rate to Effective Rate:
Let: to determine the percent of foreign By 1 Peso – 1 Year Analysis
PN = probability that an event will not impurities. The following data were
happen ( 1 – d ) ( 1+ i )n =1
recorded:
PY = probability that an event will happen d = discounted interest rate
1.2, 2.1, 1.7, 1.6, 0.9, 2.7, 1.8, 2.5, 2.0, 1.0,
PY + PN =1 i = effective annual interest
0.8, 2.0, 0.5, 1.3, 1.2.
a. Compute the sample mean.
Note: if there are three or more b. Compute the sample median. Continuous Compounding Interest
possibilities of corresponding probability c. Compute the sample mode. Formula
¿
P1, P2, P3 … Pn F=P e
Thus: ENGINEERING ECONOMY
P1 + P2+ P3+ …+ Pn=1 PROBLEM 18:
That is: Sum of all probabilities equals 1 SIMPLE INTEREST-interest that is closely A man deposited ₱5,000 on the date his
correlated to the length of time and son celebrated his 1st birthday. If money is
Multiple Probabilities: principal borrowed worth 10% compounded semi-annually,
what is the maximum amount the son can
P y =P1 × P2 × P3 ×… × Pn
Types of Simple Interest: withdraw on his 18th birthday?
Where: P1, P2, P3 = Independent
1. Ordinary simple interest – based on 30 a. ₱28,451 b. ₱32,145
probabilities
days per month or 360 days per year (also c. ₱26,267 d. ₱29,411
known as the banker’s year).
PROBLEM 12: Annuity- consists of a series of equal
If each coded item in a catalog begins with
2. Exact simple interest – based on 365 payments made at equal intervals of time.
3 distinct letters followed by 4 distinct
days per year or 366 days for a leap year.
nonzero digits, find the probability of
randomly selecting one of these coded
items with the first letter a vowel and the
Note: A year is leap year if it is divisible by
4 except when it is divisible by 100 but not
by 400.
F= A [
( 1+ i)n −1
i ]
[ ]
last digit even.
( 1+i )n−1
Key formulas: P= A m
PROBLEM 13: i ( 1+i )
If a letter is chosen at random from the I =Pin
n- number of payments
English alphabet, find the probability that F=P+ I=P(1+¿)
m- number of periods
the letter: Where:
a. is listed somewhere after the I = Interest
Types of Annuity:
letter g? P = present amount or capital
1. Ordinary Annuity - equal payments are
b. is listed somewhere ahead of the i = Interest rate
made at the end of each payment period
letter j? n = number of periods
starting from the first period.
c. is a vowel? F = future amount
2. Deferred Annuity - payment of the first
amount is deferred a certain number of
PROBLEM 14: PROBLEM 17:
periods after the first.
HOLY ANGEL UNIVERSITY
CORRELATION COURSE
Module 2
PROBLEM 19:
Engr. Aldous borrowed ₱100,000.00 and
promised to pay after 5 months at an
interest of 8% compounded monthly per
month. How much will Engr. Aldous pay?
PROBLEM 20:
A person borrowed ₱500,000 at an
interest rate of 18% compounded
monthly. Monthly payments of
₱12,968.31 are agreed upon. The length
of the loan in months closest to:
a. 64 b. 58
c. 40 d. 52
DEPRECIATION:
The first cost of a machine is
₱1,800,000.00 with a salvage value of
₱300,000.00 at the end of its life in 5
years. Determine the book value after 3
years using:
21. Straight Line Method.
a. ₱940,000 b. ₱759,200
c. ₱900,000 d. ₱800,000