71. How long will it take money to double itself if invested at 5% compounded annually ?
A. 13.7 years
B. 14.7 years
C. 14.2 years
D. 15.3 years
✅ The correct answer is option C.
Engineering Economy MCQs
72. What is the present worth of a P500 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 10 % ?
A. P 727.17
B. P 717.17
C. P 714.71
D. P 731.17
✅ The correct answer is option B.
73. Engr. Trinidad loans from a loan firm an amount of P100,000 with a rate of simple interest of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, she has to pay the full amount of P100,000, what is the actual rate of interest ?
A. 23.5 %
B. 24.7 %
C. 25.0 %
D. 25.8 %
✅ The correct answer is option C.
74. What is the factor name of the formula (1+i)^-n ?
A. Uniform gradient future worth
B. Capital recovery
C. Single payment present worth
D. Single payment compound amount
✅ The correct answer is option C.
75. What is the factor name of the formula [i(1+i)^n]/[((1+i)^n)-1] ?
A. Uniform series sinking fund
B. Capital recovery
C. Single payment present worth
D. Uniform gradient future worth
✅ The correct answer is option B.
76. What refers to the present worth of cost associated with an asset for an infinite period of time ?
A. Annual cost
B. Increment cost
C. Capitalized cost
D. Operating cost
✅ The correct answer is option C.
77. What is considered as the standard unit which forms the basis of a country’s domestic money supply ?
A. Monetary unit
B. Currency
C. Foreign exchange
D. Cash or check
✅ The correct answer is option C.
78. What annuity is required over 12 years to equate with a future amount of P 20,000? Assume i= 6% annually ?
A. P 1,290.34
B. P 1,185.54
C. P 1,107.34
D. P 1,205.74
✅ The correct answer is option B.
79. Oligopoly exists when there is/are _______________?
A. Few sellers and few buyers
B. Few sellers and many buyers
C. Many sellers and few buyers
D. One seller and few buyers
✅ The correct answer is option C.
80. You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the money from the bank ?
A. P 62.44
B. P44.55
C. P54.66
D. P37.56
✅ The correct answer is option C.