CONTENTs

Ques tion
Question Bank .l present
Economy
1-24
Question Bank2 Simple lnterest and
Discount
25_40
Question Bank 3
Compound lnterest
Question Bank 4 41 _ 102
Annuity
103 _ 194 A bookstore
Question Bank 5 should this b
Uniform Gradient
195 _ 212
Question Bank 6 A. P 2o0.oo
Bonds B. P 3oo.oo
Question Bank 7
213 _ 220 c. P 4oo.oo
Depreciation and
Depletion D. P 5oo.o0
221 _240
Question Bank g
and AnnualCost _260
241
Question Bank g
Letx=sellingprice
sis 261 _ 280
Question Bank 10 Objective euestions
Note: The profit of
30o/
281 _ 302 th"-r 'rri"g;.t""'"^ffi
Theories and Formulas ::t#:Tf X?i#^"";1;innor#"or,n"capitaror3oyoor
303 - 323
Profit = 0.30x _+ Eq.
Glossary 1

Also,
324 - 337
5ffi :1'[%']3?;"*,'*r- discount
=
F'rotrt = 0.90x _
200 _+ Eq.
2

;:1f i%:'#lo;111 and 2;

200 = g.5x
x=400
; The selting price
of the book is p 400.00

A businessma
tncome from a
what minimum
to be justified?

A. B.o2 %
B. 10.89
c.
12.07 %
%
D. 11 .08 0/o
2 Question Bank - Engineering Economics by Jaime R. 'l'iong Present Economy 3

,%*-
Let x = capital Dalisay Corporation's gross margin is 45o/o of sales. Operating expenses such as
y - gross income sales and administration are 15oh of sales. Dalisay Corporation is in 40% tax
bracket. What percent of sales is their profit after taxes?
Projected earnings = 0.07x
A. 21%
Taxableincome=y-x B. 20 o/o

tax = 0.42 (y - x) c. 19%

D. 18 o/o

Net earnings = Taxable income - tax ,(*rt,"..

Net earnings = (y - x)- o.+z(v - *)
Let x = sales of Dalisay Corporation
Net earnings = 0.58(y - x)
Gross margin = 0.45x
Projected income = net earnings Operating expenses = 0.15x
0.07x=0.58(y-x)
0.07x:0.58y-0.58x Net income before taxes = 0.45x - 0.15x
0.65x = 0.58y = 0.30x

\r-_ 0.65x Since tax is 40%, net profit after taxes will be:
'- o.s8
Y =1.1207x Net profit = 0.60(0.30x)
Net profit = 0.18x
.'. Rate of return before payment of taxes = 0.1207 or 12.07o/o of the capital
.'. Net profit is 18% of the sales

A manufacturing flrm maintains one product assembly line to produce signal

generators. Weekly demand for the generators is 35 units. The line operates for 7 ln determining the cost involved in fabricating sub-assembly B within a company,
hours per day, 5 days per week. What is the maximum production time per unit in the following data have been gathered:
hours required of the line to meet the demand?
.... P 0.30 per unit
A. t hour .... P 0.50 per unit
B. t hour and 10 minutes .... P 300.00 per set up
C. t hour and 15 minutes
D. t hour and 20 minutes It is decided to subcontract the manufacturing of assembly B to an outside
company. For an order of 100 units, what is the cost per unit that is acceptable to
,%/,* the company?

Let t = maximum production time per unit A. P 3.80

B. P 4.00
c. P 4.10
. _ (, z nours )(s oays)( l week
')

'- [ day jt *""k ,1.35 ,",tr.l

t = t hour per unit
.'. The maximum production time per unit is t hour.
 Present Economy 5
Question []ank - [ ngint,t'rirrg l,)r'onomir:s by,]airnu ll,. 'l'iong

Cost per unit = 0.30 * O.so * 1-09

100
in 50
An equipment installation job in the completion stage can be complete.d
Cost per unit = P 3.80
drr;-_.'8 h;rr/day work, *itn so men workins- yll t 9,P1tr.::t-"llil11s,i40
job,
.'. The cost per unit is P 3.80. Jri", in"mechanical engineer contractor decided to add 15 men on the
overtime not being Permitted.

lf the liquidated damages is P 5000 per day of delay, and the men
are paid P150
how much m6ney would he sa re with the additional workers?
By selling balut at P 5 per dozen, a vendor gains 20%. The cost of the eggs rises p"r OrV,
by 12.Soh.lf he sells at the same price as before, find his new gain in %. A. P 43,450
B. P 43,750
A. 6.89 % c. P 44.250
B. 6.67 %
C. 6.58 o/o
D. 6.12 o/o
S/.k"o...
,c/7,.l,t,,..
With 50 men only:
Let x = original cost of a dozen of balut No. of days delaYed = 50 - 40 = 10 days

cost+profit=5 Liquidated damages = 5000(10) = 59999

x+0.20x=5 Salary of 50 men = 50(50)150) = 375000
1.2Ox =5
Total exPenses = 50000 + 375000
x = 4.17 Total exPenses = 425000

Cost per dozen of balut = P4.17 With 65 men (an additional of 15 men):

Let y = new cost of dozen of balut Solving for the man-day to finish the job' N:

y = 1.'125x N : (50 men)(50 daYs)

y =1.125(.17) '
N= 2500 man - day
y = 4.69125
Let x = number of days to finish the job with 15 more men (a total of 65)
cost+Profit=5
4.69125 + (% gain)(4.6912s) = 5 (50+15)x=2500
ohgain 0.0658 x = 38.46
=
o/o gain:
6.58%
Sayx=39daYs
paid by the
.'. The new gain of the balot vendor is 6.58 %. Since number of days is 39 < 40, thus no penalty will be
contractor. So expenses Will solely on the salary of the workers:

Salary of 65 men = 65(150X39) = 380250

P 44,750'00
.'. The amount saved = 425000 - 380250 =

PROPERTY TAG
21432 n
DO NOT REMOVE
6 Quest,ion lllrnk It)rrgirrct,rirrg l,l,orrornir:s by Jainro Ii,. 'l'iong Present Econorny 7

ln a eertain department store, the monthly salary of a saleslady is parfly constant Jojo bought a second-hand Betamax VCR and then sold it to Rudy at a profit of
and partly varies as the value of her sales for the month. When the value of her 40%. Rudy then sold the VCR to Noel at a profit ol20%. lf Noel paid P 2,856
sales for the month is P 10,000.00, her salary for the month is P g00.00. When more than it cost Jojo, how much did Jojo pay for the unit?
her monthly sales go up to P 12,000.00, her monthly salary goes up to
P1,000.00. What must be the value of her sales for the month so that her salary A. P 4,100
for the month will be P 2,000.00? B. P 3,900
P 4,000
A.
B.
P 30,000
P 31,000
c.
D. P 4,200

c. P 32,000 '
/ /,/,t,,,
D.
.
P 33,000

Let x = amount Jojo paid for the VCR unit

,'/./,r/rz"r..
Amount Noel paid for the VCR unit = x + 2856 -+ Eq. 1 I

Let x=fixedsalary I

k = constant of proportionality of salesgirl's variable salary Amount Rudy paid for the VCR unit = x + 0.40x = 1.40x
z = sales for salesgirl to earn P2,000.00
Amount Noel paid for the VCR unit = ( .20)= 1 .68x -+ Eq.
x + k(10000) = 900 -+ Eq. 1
.+Ox)(t 2

x + k(12000) = 1
000 --> Eq. 2 Equating equations 1 and2'.

Subtract Eq. 1 from Eq.2: x+2856=1.68x

0.68x = 2856
2000y = 1 00
x= 4200
v=-100
' 2000 .'. Jojo paid P 4,200 for the VCR unit.
Y = 0'05

Substitute the value of y in Eq. 1

The selling price of a TV set is double that of its net cost. lf the W set is sold to a
x + 0.05(1 0000) = 900 customer at a profit of 25Yo of the net cost, how much discount was given to the
x=400 customer?

To earn a salary of P 2,000.00: A. 37.5 o/o

B. 37.9 o/o

x+y(z)=2000 c. 38.2%
400+0.052=2000 D. 38.5 %
z=32000

Let x=netcost
Selling price = 2x

Profit = 0.25x
Profit = Selling price - net cost - discount
 (,lrrt,sl i.lr llrrrrk l,),grrrr,r,ri,g l,l.rrr.r.r,.:, lr1,,lr1rrrrr, lf 'l'iorrg I)rcsent Economy 9
0.25x 2x x disr:ounl
O.25x -. x discount
discount = 0.75x The quarrying cost of marble and granite blocks plus delivery cost to the
processing plant each is P 2,400.00 per cubic meter. Processing cost of marble
Discount is75% of the net cost. lnto tile is P 200.00 per square meter and that of granite into tiles also is P 600.00
per square meter.
Solving for discount in terms of percent of selling price;
discount -
o'75x lf marble has a net yield of 40 square meters of tiles per cubic meter of block and
2x eells at P 400 per square meter, and granite gives a net yield of 50 square meters
discount = 0.375 of tiles per cubic meter of block andgranite
sells at P 1000profitable
is more
per square meter,marble
than the
Considering
all other costs to be the same, the by
discount = 375%
how much?
The discount given to the customer is 3T.S %.
.'.
A. P 12,000 per cubic meter
B. P 13,000 per cubic meter
C. P 14,000 per cubic meter
D. P 15,000 per cubic meter
A Mechanical Engineer who was awarded a p 450,000 contract to install
the
machineries of an oil mill failed to finish the work on time. As nrovirtecr far in rho '
/ /./,t.,
contract, hE ha enalty t to on er
day for the first per % e next t For Marble (Per cubic meter):
per day for eve t lf the ty was
days was the completion of the contract ? Quarrying cost & delivery cost to processing plant = 2400
A. 26 days processing cost into tit"" = 200
,q. *1= aooo
[( sq.m ]1+o
B. 27 days J'
G. 28 days Total production cost =2400 + 8000 = 10400

Total income = 40(400) = 16000

Daily penatty for the first 1 0 days = (O.OrX+SOOO0) = 12s Profit = Total income - Total production cost
I 1
Profit=16000-10400
Total penalty for the first O days = 1125(10) = 1 12SO
1
Profit = 5600
Daily penalty
for the next 10 days = (O.OO5X45OO00) = 2259 For Granite (Per cubic meter):
Total penalty for the next 10 days 22SO(1O) = 22SOO
= Quarrying cost & delivery cost to processing plant = 2400
Daily penalty for the succeeding days = (0.01)(450,000)
= 45gO
processins cost into tir" = sq. m)= soooo
solving for the number of days (x) beyond 20 days from end of contract
that [ 99)@o
would amount the penalty to 60750.0b
Total production cost = 2400 + 30000 = 32400
4500x + 22500 +11250 :60750
x=6 Total income = 50(1000) = 50000

.'. The completion of the contract was delayed for 26 days. Profit = Total income - Total production cost

Profit=50000-32400
Profit = 17600