MULTIPLE CHOICE QUESTIONS IN ENGINEERING MATHEMATICS FOR COMPUTERIZED LICENSURE EXAM

Engineering Economics 1.) A price tag of P1200 is specified if paid within 60 days but offers a 3% discount for cash in 30 days. Find the rate of interest. a.37.11% c. 40.21% b.38.51% d. 39.31% 2.) It is the practice of almost all bank in the Philippines that when they grant a loan, the interest for 1 year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with the bank and the P80000 was approved at an interest rate of 14% of which P11200 was deducted and you were given ac check of P68800. Since you have to pay the amount of P80000 one year after, what then will be the effective interest rate? a.16.28% c. 17.30% b.38.51% d. 39.31% 3.) Mr. J. Dela Cruz borrowed money from the bank. He received from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the simple interest rate and the corresponding discount rate or often referred to as the “Banker’s Discount”. a.15.92% ; 13.73% c. 12.95% ; 17.33% b.18.28% ; 13.12% d. 19.25% ; 13.33% 4.) A man borrowed from the bank under a promissory note that he signed in the amount of P25000.00 for a period of 1year. He received only the amount of P21,915.00 after the bank collected the advance interest and an additional amount of P85.00 for notarial and inspection fees. What was the rate of interest that the bank collected in advance? a.13.64% c. 16.43% b.18.37% d. 10.32%5.) Agnes Abanilla was granted a loan of P20,000 by her employer CPM Industrial Fabricator and Construction Corporation with an interest at 6% for 180days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180days. If discounted at once, find the proceeds in the note. a. P18,800 c. P18,000 b. P19,000 d. P18,400 6.) P4000 is borrowed for 75days at 16% per annum simple interest. How much will be due at the end of 75days? a. P4186.43 c. P4133.33 b. P5124.54 d. P5625.43 7.) Mr. Almagro made a money market placement of P1,000,000 for 30 days at 7.5% per year. If withholding tax is 20%, what is the net interest that Mr. Almagro will receive at the end of the month? a. P3,000 c. P6,000 b. P4,000 d. P5,000 8.) A bill for motorboat specifies the cost as P1,200 due at the end of 100days but offers a 4% discount for cash in 30days. What is the highest rate, simple interest at which the buyer can afford to borrow money in order to take advantage of the discount? a. 18.4% c. 20.9% b. 19.6% d. 21.4% 9.) In buying a computer disk, the buyer was offered the options of paying P250 cash at the end of 30days or P270 at the end of 120days. At what rate is the buyer paying simple interest if he agree to pay at the end of 120days? a. 32% c. 28% b.40% d. 25%10.) On March 1, 1996 Mr. Almagro obtains a loan of P1500 from Mr. Abella and signs a note promising to pay the principal and accumulated simple interest at the rate of 5% at the end of 120days. On May 15, 1996, Mr. Abella discounts the note at the bank whose discount rate is 6%. What does he receive? a. P2,201.48 c. P1,513.56 b. P1,123.29 d. P938.20 11.) A deposit of P110,000 was made for 31days. The net interest after deducting 20% withholding tax is P890.36. Find the rate of return annually. a. 12.25 c. 12.75 b. 11.75 d. 11.95 12.) If you borrowed money from your friend with simple interest of 12%, find the present worth of P50,000 which is due at the end of 7months. a. P46,200 c. P46,729 b. P44,893 d. P45,789 13.) A man borrowed P2000 from a bank and promise to pay the amount for 1year. He received only the amount of P1,920 after the bank collected an advance interest of P80. What was the rate of discount and the rate of interest that the bank collected in advance? a. 4% ; 4.17% c. 4% ; 4.71% b. 3% ; 3.17% d. 3% ; 3.71% 14.) An engineer promised to pay P36,000 at the end of 90days. He was offered a 10% discount if he pays in 30days. Find the rate of interest. a. 64.6% c. 66.6% b. 65.6% d. 67.6%15.) A man is required to pay P200 at the end of 160days or P190 at the end of 40days. Determine the rate of interest. a. 18.4% c. 15.8% b. 19.6% d. 16.4% 16.) Compute the discount if P2000 is discounted for 6months at 8% simple interest. a. P29.67 c. P76.92 b. P67.29 d. P92.76 17.) The amount of P12800 in 4years at 5% compounded quarterly is _____. a. P14,785.34 c. P16,311.26 b. P15,614.59 d. P15,847.33 18.) A man borrows money from a bank which uses a simple discount rate of 14%. He signs a promissory note promising to pay P500.00 per month at the end of 4th, 6th, and 7th month respectively. Determine the amount of money that he received from the bank. a. P1403.68 c. P1102.37 b. P1340.38 d. P1030.28 19.) A nominal interest of 3% compounded continuously is given on the account. What is the accumulated amount of P10,000 after 10years? a. P13,610.10 c. P13,498.60 b. P13,500.10 d. P13,439.16 20.) BY the condition of a will, the sum of P2000 is left to a girl to be held in trust fund by her guardian until it amount to P50000.00. When will the girl receive the money of the fund is invested at 8% compounded quarterly?a. 7.98 years c. 11.57 years b. 10.34 years d. 10.45 years 21.) A man expects to receive P25,000 in 8 years. How much is that worth now considering interest at 8% compounded quarterly? a. P13,859.12 c. P13,675.23 b. P13,958.33 d. P13,265.83 22.) P500,000 was deposited at an interest of 6% compounded quarterly. Compute the compound interest after 4 years and 9 months. a. P163,475.37 c. P158,270.37 b. P178,362.37 d. P183,327