A. Unstable economy
B. Rate of interest cannot be exactly determined
C. The initial deprecation is high
D. The initial depreciation is low
✅ The correct answer is option D.
Engineering Economy MCQs
132. Which of these gives the lowest effective rate of interest ?
A. 12.35 % compounded annually
B. 11.90 % compounded annually
C. 12.20 % compounded annually
D. 11.60 % compounded annually
✅ The correct answer is option D.
133. A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan ?
A. P 6,999.39
B. P 6,292.93
C. P 6,222.39
D. P 6,922.93
✅ The correct answer is option D.
134. In computing depreciation of an equipment, which of the following represents the first cost ?
A. The original purchase price and freight charges
B. Installation expenses
C. Initial taxes and permit fees
D. All of the above
✅ The correct answer is option D.
135. Salvage value is sometimes known as _____________________?
A. Scrap value
B. Going value
C. Junk value
D. Second-hand value
✅ The correct answer is option D.
136. Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest?
A. 12.19 %
B. 12.03 %
C. 11.54 %
D. 10.29 %
✅ The correct answer is option D.
137. What refers to the present worth of all the amount the bondholder will receive through his possession of the bond ?
A. Par value of bond
B. Face value of bond
C. Redeemed value of bond
D. Value of bond
✅ The correct answer is option D.
138. What refers to the present worth of the probable future net earnings ?
A. Total fair value
B. Total market value
C. Going concern value
D. Earning value
✅ The correct answer is option D.
139. What is defined as any tangible economic product that contributes directly or indirectly to the satisfaction of human want ?
A. Services
B. Goods
C. Commodities
D. Goods or commodities
✅ The correct answer is option D.
140. What refers to the goods and services that are required to support human life, needs and activities ?
A. Producer products
B. Consumer products
C. Luxury
D. Necessity
✅ The correct answer is option D.