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  • Question
  • Renu Bala deposits Rs 1200 now, Rs 800 two years from now and Rs 1000 five years from now. If the savings bank's rate of interest in 5%, she will receive an amount of Rs X 10 years from now, where X is


  • Options
  • A. Rs 3415
  • B. Rs 4225
  • C. Rs 4413
  • D. Rs 4826

  • Correct Answer
  • Rs 4413 


  • Engineering Economy problems


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    • 1. Pick up the correct statement from the following:

    • Options
    • A. The difference between sales revenue and cost of goods sold, is known as 'Gross Profit.'
    • B. The gross profit percentage is the average profit margin obtained on goods sold.
    • C. The relationship of contribution to sales is known as contribution ratio
    • D. The difference between sales and variable cost of sales, is called contribution.
    • E. All of these
    • Discuss
    • 2. Pick up the correct statement from the following:

    • Options
    • A. The receipts and disbursements in a given time interval are referred to as cash flow.
    • B. The assumptions that all cash flows occur at the end of the interest period, is known as the end of period convention.
    • C. A cash flow diagram is a graphical representation of cash flows drawn on a time scale.
    • D. The cash flow diagram represents the statement of the problem and also includes what is given and what is to be found.
    • E. All of the above.
    • Discuss
    • 3. The owner of the construction company makes use of the estimate :

    • Options
    • A. to determine the capital investment costs.
    • B. to assist in financial arrangements
    • C. to determine economic feasibility of the project.
    • D. to determine the tax, insurance and evaluation purpose.
    • E. All of these
    • Discuss
    • 4. Keeping in view, the feasibility order of magnitude, the preliminary, conceptual or budget estimates, are prepared by :

    • Options
    • A. architect/engineer
    • B. construction manager
    • C. owner himself/herself
    • D. construction manager
    • E. None of these
    • Discuss
    • 5. A project construction cost estimate includes:

    • Options
    • A. the labour and material cost
    • B. the equipment and over head cost
    • C. the profit of the contractor
    • D. All of these
    • Discuss
    • 6. If P is principal amount, i is the rate of interest per annum and n is the number of periods in years, the compound amount factor (CAF) is :

    • Options
    • A. (1 + i)n
    • B. (1 + i)(1/2n)
    • C. (n + i)
    • D. None of these
    • Discuss
    • 7. The construction manager uses the estimate of the project

    • Options
    • A. to tell the owner of the project to take his/her financial decision.
    • B. to advise the architect/engineer regarding design cost parameter especially in value engineering analysis.
    • C. to develop bids on the project.
    • D. to control the project during its construction.
    • E. All of these
    • Discuss
    • 8. If a seller recovers his capital along with accumulated compensating interest not in one single lumpsum payment but in periodical equal payments, over time :

    • Options
    • A. Capital Recovery Annuity fs availed
    • B. Present work Annuity is availed
    • C. Sinking Fund Annuity is availed
    • D. Sinking Fund Annuity is availed
    • Discuss
    • 9. Sewage treatment in an oxidation pond is accomplished primarily by :

    • Options
    • A. alga-bacterial symbiosis
    • B. algal photosynthesis only
    • C. bacterial oxidation only
    • D. chemical oxidation only
    • Discuss
    • 10. The following characteristics pertain to the sand filters used in water industry.

      1. Filtration rate is 1 to 4 m3 (m2 day).
      2. Typical duration of operation in one run is 24 to 72 hours.
      3. Operating cost is low.

      Which of the above characteristics pertain to slow sand filters?

    • Options
    • A. I, II and III
    • B. I and II
    • C. II and III
    • D. I and III
    • Discuss


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