Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A Quiz: Prelim Exam
G Twenty percent when compound x
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ME 304-Engineering Economics
Instructions: 1. Solve the following problems.
2. COMPLETE SOLUTION ONLY.
3. Box your final answer and use 3 decimal places.
4. Do not use Shift+Solve.
Note: Write the Honor Pledge at the end of your paper with signature.
1. Twenty percent when compounded quarterly will have an effective rate of
2. Determine present worth and the accumulated amount of an annuity consisting
of 6 payments of P120,000 each, the payment is made at the beginning of each
year. Money is worth 15% compounded annually.
3. A commercial bldg. can be acquired at a down payment of P500,000 and a
yearly payment of P100,000 at the end of each year for a period of 10 years,
starting at the end of 5 years from the date of purchase. If money is worth 12%
compounded yearly. What is the cash price of the commercial bldg.?
4. Determine the exact simple interest on P10,500.00 for the period from January
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