ESAS - Engineering Economy

How long will it take money to triple itself if invested at 8% compounded annually?

Find the difference between simple interest and compound interest on a savings deposit of P50,000 at 10% per annum for 3yrs.

A man borrows $100,000 at 10% effective annual interest. He must payback the loan over 30yrs with uniform monthly payments due on the first day of each month. Approximately what amount does the man pay each month?

A man borrowed $15,000 2yrs ago. The repayment terms of the loan are 10% interest for 10yrs and uniform annual payments. He just made his second payment. How much principal, most nearly, does he still owe?

$10,000 is invested at the beginning of a year in a 15% security and held for 5yrs. During that time, the average annual inflation is 6%. Approximately how much, in terms of year zero dollars, will the account at maturity?

A firm borrows $2000 for 6yrs at 8%, to be repaid in lump sum at the end of 6yr. At the end of 6yr, the firm renews the loan for the amount due plus $2000 more for 2yrs at 8%. What is most nearly the amount of the loan renewal?

A student needs $4000 per year for four years to attend college. Her father invested $5000 in a 7% account for her education when she was born. If the student withdraws $4000 at the end of her 17th, 18th, 19th, and 20th years, how much money will be left in the account at the end of her 21st year?

A machine is under consideration for investment. The cost of the machine is $25,000. Each year it operates, the machine will generate a savings of $15,000. Given an effective annual interest rate of 18%, what is the discounted payback period, in years, on the investment in the machine?

An investment of P350,000 is made, to be followed by revenue of P200,000 each year for 3yrs What is most nearly the annual rate of return on investment for this project?

A young engineer borrowed P10,000 at 12% interest and paid P2,000 per annum for the last 4yrs. What does he have to pay at the end of 5th year in order to pay off his loan?

A man plans a deposit of P500 at the end of each month for 10yrs at 12% annual interest compounded monthly. What will be the amount that will be available in 2yrs?

The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal rate compounded monthly, so that each employee will receive a P1,000 bonus?

An employee is about to receive the sum of P300 at the end of each year for 5yrs. One year prior to the receipt of the first sum, he decides to discount all 5 sums. If the interest rate is 6%, what proceeds will he obtain?

If P5,000 shall accumulate for 10yrs at 8% compounded quarterly, then what is the compound interest at the end of 10 years?

A deposit of P110,000 was made for 31 days. The net interest after deducting 20% withholding tax is P890.36. Find the rate of return annually.