Engineering Economy problems
- 1. 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 Discuss
Correct Answer: Rs 4413
- 2. 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
Correct Answer: (1 + i)n
- 3. 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
Correct Answer: All of these
- 4. 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
Correct Answer: Capital Recovery Annuity fs availed
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