With Engineering Economy comprising almost half of Mathematics questions during the board exam, I think it's a wise choice to really focus additional attention to that subject. Here's the second batch of questions on Engineering Economy.
Instruction: Choose the BEST answer.
1. It is a depreciation method based on the assumption that the value of a property is directly proportional to its age.
a. Straight Line Method
b. Sinking Fund Method
c. Declining Balance Method
d. Service Output Method
2. Which of the following is NOT a requirement of a depreciation method?
a. It should be simple
b. It should recover the capital
c. BIR approved
d. The book value should be higher than the market value
3. The decrease in the purchasing power of money
4. Equal periodic payment of a debt.
5. Minimum number of years required for a bond redemption.
a. 5 years
b. 1 year
c. 10 years
d. 15 years
6. Amount of money spent on a business operation which cannot be recovered due to certain reason.
a. Fixed cost
b. Sunk cost
c. First cost
d. Increment cost
7. Represents share in the ownership of the capital corporation.
b. Mutual fund
8. It is the actual interest earned by the principal in ONE YEAR.
a. Effective interest
b. Exact interest
c. Simple interest
d. Compounded interest
9. A type of annuity where the payment goes on indefinitely
a. Ordinary annuity
b. Annuity due
d. Deferred annuity
10. An economic situation when there is only one vendor of a product or service.
Reference: Engineering Economy by H. Sta. Maria
Answers will be posted next week.