Engineering economics 1. Fifteen years ago P1,000 was deposited in a bank account, and today it is worth P2,370. The bankpays interest semi-annually. What was the nominal annual interest rate paid on this account?a. 2.9%b. 4.4%C. 5.0%d. 5.8%2. If you invest P25,000 at 8% interest compounded annually, approximately how much money will be inthe account at the end of 10 years?a. P31,000b. P46,000c. P54,000d. P75,0003. A John wants to surprise his mother with a gift for her birthday, which is five years away. Hedetermines that it will cost him P5000. Assuming an interest rate of 5.50% compounded daily,approximately how much money does he need to deposit today for the gift?

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1. Fifteen years ago P1,000 was deposited in a bank account, and today it is worth P2,370. The bank pays interest semi-annually. What was the nominal annual interest rate paid on this account? a. 2.9% b. 4.4% C. 5.0% d. 5.8%

1. Fifteen years ago P1,000 was deposited in a bank account, and today it is worth P2,370. The bank pays interest semi-annually. What was the nominal annual interest rate paid on this account? a. 2.9% b. 4.4% C. 5.0% d. 5.8%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Engineering economics

1. Fifteen years ago P1,000 was deposited in a bank account, and today it is worth P2,370. The bank
pays interest semi-annually. What was the nominal annual interest rate paid on this account?
a. 2.9%
b. 4.4%
C. 5.0%
d. 5.8%
2. If you invest P25,000 at 8% interest compounded annually, approximately how much money will be in
the account at the end of 10 years?
a. P31,000
b. P46,000
c. P54,000
d. P75,000
3. A John wants to surprise his mother with a gift for her birthday, which is five years away. He
determines that it will cost him P5000. Assuming an interest rate of 5.50% compounded daily,
approximately how much money does he need to deposit today for the gift?

Application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

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