Engineering Economics - Study Mode

Show All Answers

[#196] What is another term for “perfect competition”?

(A) Atomistic competition

(B) No-limit competition

(C) Free-for-all competition

(D) Heterogeneous market

Correct Answer

(A) Atomistic competition

[#197] A person buys a piece of lot for P 100,000 downpayment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?

(A) P 142,999.08

(B) P 143,104.89

(C) P 142,189.67

(D) P 143,999.08

Correct Answer

(D) P 143,999.08

[#198] Mr. Jun Ramos was granted a loan of P20,000 by his employer Excel First Review and Training Center, Inc. with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note.

(A) P18,000

(B) P18,900

(C) P19,000

(D) P19,100

Correct Answer

(A) P18,000

[#199] What is the feature of some bonds whereby the issuer can redeem it before it matures?

(A) Return clause

(B) Callability

(C) Recall clause

(D) Call class

Correct Answer

(B) Callability

[#200] Present worth Annuity (PWA) is generally known as

(A) Premium annuities

(B) Income annuities

(C) Future annuities

(D) All of these

Correct Answer

(D) All of these