If P is principal amount, i is the rate of interest and n is the number of perio

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Question
If P is principal amount, i is the rate of interest and n is the number of periods in years, then the interest factor is :
Options
A. (1 + ni)
B. (ni - 1)
C. ni
D. None of these

Correct Answer

(1 + ni)

Engineering Economy problems

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1. Pick up the correct statement from the following:
Options
A. The ability of a company to meet obligations which are likely to mature in short term, is called liquidity.
B. The liquidity ratio may be defined as a relationship of current liabilities and current assests and advances.
C. The liquidity ratios are used to indicate the financial position of the firm.
D. All of these

2. Refer to the cash flow diagram of uniform gradient in a cash flow (in the given figure), the gradient is :
Options
A. Rs 10000 per year
B. Rs 15000 per year
C. Rs 20000 per year
D. Rs 25000 per year

6. Pick up the correct statement from the following:
Options
A. An annuity is a series of equal payments occurring at equal period of time.
B. Annuity is called an equal payment or uniform payment series.
C. An annuity may have periods of time of any length but should always be of equal length.
D. All the above.

7. The key to profitable operation for project cost control, is :
Options
A. To keep the project cost equal to original cost estimate.
B. To keep the project cost equal to subsequent construction budget.
C. To keep the project cost within the cost budget and knowing when and where job costs are deviating.
D. None of these

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