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Engineering Economy Problem Set Solutions

Problem Set for Integration Course
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0% found this document useful (0 votes)
12 views9 pages

Engineering Economy Problem Set Solutions

Problem Set for Integration Course
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES

938 Aurora Boulevard, Cubao, Quezon City

COLLEGE OF ENGINEERING AND ARCHITECTURE


Civil Engineering Department

CE 304 INTEGRATION COURSE FOR CE 1


SATURDAY (11:30 AM TO 1:30 PM)
CE32S5

FINAL TERM

PROBLEM SET NO. 3

SUBMITTED BY

MILAN, MARK ANGELO S 2113252

SUBMITTED TO:

ENGR. DIONESSE AMOR BALINGWAY

Instructor

May 14, 2024


PROBLEMS
Engineering Economy
1. P 4,000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at the end of 75 days?
2. A deposit of P 110,000 was made for 31 days. The net interest after deducting 20% withholding tax is P 890.36. Find the
rate of return annually.
3. Agnes Abanilla was granted a loan of P 20,000 by her employer CPM Industrial Fabricator and Construction Corporation
with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note
for P 20,000 non-interest for 180 days. If discounted, find the proceeds of the note.
4. What will be the future worth of money after 12 months, if the sum of P 25,000 is invested today at simple interest of 1%
per month?
5. If you borrowed money from your friend with simple interest 12%, find the present worth of P 50,000 which is due at the
end of 7 months.
6. Annie buys a television set from a merchant who ask P 1,250 at the end of 60 days. Annie wishes to pay immediately and
the merchant offers ti compute the cash price on the assumption that money is worth 8% simple interest. What is the cash
price?
7. Mandarin Bank advertises 9.5% account that yields 9.84% annually. Find how often the interest is compounded.
8. A bank pays one percent interest on the savings account four times a year. The effective annual interest rate is?
9. Find the present worth of a future payment of P 100,000 to be made in 10 years with an interest of 12% compounded
quarterly.
10. The amount of P 50,000 was deposited in the bank earning at interest of 7.5% per annum. Determine the total amount
at the end of 5 years, if the principal and interest were not withdrawn during the period.
11. How long (in years) will it take money to quadruple if it earns 7% compounded semi-annually?
12. At an interest rate of 10% compounded annually, how much will a deposit of P 1,500 be in 15 years?
13. If P 500,000 is deposited at a rate of 11.25% compounded monthly, determine the compounded interest after 7 years
and 9 months.
14. A sum of P 1,000 is invested now and left for 8 years, at which time the principal is withdrawn. The interest has accrued
is left for another 8 years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th
year?
15. A merchant puts his P 2,000.00 to a small business for a period of six years. With a given interest rate on the investment
of 15% per year, compounded annually, how much will he collect a the end of the sixth year?
16. By the condition of a will, the sum of P 20,000 is left to a girl to be held in trust fund by her guardian until it amounts to P
50,000. When will the girl receive the money if the fund is invested at 8% compounded quarterly?
17. What is the present worth of teo P 100 payments at the end of the third year and fourth year? The annual interest rate is
8%.
18. A man purchased ib nonthly installment a P 100,000 worth of land. The interest rate is 12% nominal and payable in 20
years. What is the monthly amortization?
19. Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is 12% compounded
quarterly, how much was initially borrowed if the quarterly payment is P 2000.00?
20. A debt of P 10,000 with 10% interest compounded semi-annually is to be amortized by semi-annual payment over the
next 5 years. The first due in 6 months. Determine the semi-annual payment.
21. Mr. Cruz plant to deposit for the education of his 5 year old son, P 500 at the end of each month for 10 years at 12%
annual interest compounded montly. The amount that will be available in two years is?
22. A person buys a piece of lot for P 100,000 downpayment and 10 deffered semi-annual payments of P 8,000 eachm
starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-
anually?
23. A man loans P 187, 400 from a bank with interest at 5% compounded annualy. He agreese to pay his obligations by
paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments.
24. Mr. Ayala borrows P 100,000 at 10% effective annual interest. He must pay back the loan over 30 years with uniform
monthly payments due on the first day if each month. What does Mr. Ayala pay each month?
25. An instructor plans to retire in exactly one year and want an account that will pay him P 25,000 a year for the next 15
years. Assumming a 6% annual effective interest rate, what is the amount he would need to deposit now? (The fund will be
depleted after 15 years.)
26. A company issued 50 bonds of P 1,000.00 face value each, redeemable at par at the end of 15 years to accumulate the
funds required for redemption. The firm established a sinking fund consisting of annual deposits, the interest rate of the fund
being 4%. What was the principal in the fund at the end of the 12th year?
27. A machine has an initial cost of P 50,000 and a salvage value of P 10,000 after 10 years. Find the book value after 5
years using straight-line depreciation.
28. An asset is purchased for P 500,000.00. The salvage value in 25 years is P 100,000.00. What is the total depreciation in
the first three years using straight-line method?
29. An asset is purchased for P 9,000.00. Its estimated life is 10 years after which it will be sold for P 1,000.00. Find the
book value during the first year if sum-of-years’ digit (SYD) depreciation is used.
30. The annual maintenance cost of a machine is P 70,000. If the cost of making a forging is P 56 and its selling price is P
125 per forged unit, find the number of units to be forged to break even.
Surveying and Highway Engineering
1. Points A and B on a simple curve have perpendicular distances from tangent at point O equal to 28 m and 38 m,
respectively. If length of curve OB is 158.82m, determine the chord AB.
2. A simple curve with a radius of 415 m has a point A that is 25 m from the tangent that passes through the PC. Determine
the length of the curve from PC to point A.
3. A curve having a radius has an intersecting angle of 42°15’. PC is at Station 0+700. Find the right-angle offset distance to
station 0+736.78.
4. A simple curve having a radius of 200 m have tangents with bearing N 10°E and N 70°E, respectively. The stationing of
PC is 1+400. Determine the stationing of Point Q on the curve whose deflection angle from PC is 6°.
5. The external distance of a simple curve is 15 m and has central angle of 30°. If length of one station is 20 m long, find the
radius of the curve.
6. A 160 m long sag parabolic curve connects a -8% grade to a +2% grade. The grade intersects at station 1+240 with
elevation of 14.87 m. Find the elevation of the first quarter point of the curve.
7. A line was measured and found out to be 512.21 meters. It is then found out that the 50-meter tape used is 0.04 meter
too long during the measurement. Determine the true length of the line.
8. A point is sigthed from a transit and found to have a stadia intercept of 0.6 m. The distance of the stadia rod from the
transit is 61.2 m. If f + c is 0.3 m, determine the stadia constant.
9. Find the weighted mean of the following observations:
Route Difference of Elevation Frequency
A 351.1 2
B 352.2 5
C 351.3 1
D 351.7 6
10. The distance between two points is observed and tabulated with corresponding weights. Determine the weight mean
distance.
Trial Distance Weight
1 521.62 2
2 521.51 5
3 521.13 1
4 521.93 8
11. The sum of the positive departure exceeds that of the negative departures by 0.31m. The sum of the positive latitudes
exceeds that of the positive latitudes by 1.67m. Determine the corrected latitude of 48.12 m line whose latitude is 21.09 m.
The sum of the sides is measured to be 292.52 m.
12. Determine the area of the given closed traverse.
LINE LENGTH BEARING
AB 42.0 N 64°32’ E
BC 12.0 S 38°45’ E
CD 18.5 S 34°56’ W
DE 28.4 S 72°12’ W
EA 17.0 N 27°14’ W
13. Compute the impact factor for a highway curve having a radius of 550 m for a speed of 100 kph. Given 𝐼𝐹 = 𝑣 2 /𝑔𝑅.
14. Determine the braking distance of a car travelling at 100 kph on a 2% ascending grade if the coefficient of friction
between the tires and pavement is 0.6.
15. A road base has a bearing capacity of 0.15 MPa. The wheel of a truck supports a load of 200 kN with contact radius of
165 mm. What is the minimum thickness of the pavement?
1 1
16. Determine the frog angle of a turnout having a frog number of 10. Hint: 𝐹𝑁 = 2 cot⁡(2 𝐹).

17. A vein has a strike of N 43°20’ W. A drift on the vein having a grade of 2% has a bearing of N 47°20’ W. Compute the
dip of the vein.
18. Assume a line is measured three sections with errors in the individual parts equal to ±0.015m, ±0.022 m, ±0.029 m
respectively. Determine the anticipated error of the total length.
19. A highway curve has a radius curve of 80 m and a length of 90 m. If the required sight distance is 60 m, how far off the
center of the curve could you allow the bushes to grow?
20. The number of accidents for 6 years recorded in a certain section of a highway is 5892. If the average daily traffic is 476,
what is the accident rate per million entering vehicles?
ENGINEERING ECONOMY (SOLUTIONS AND ANSWERS)
SURVEYING AND HIGHWAY ENGINEERING (SOLUTIONS AND ANSWERS)
“I affirm that I have not given or received any unauthorized help on this assignment, and that this work is my own.”

Common questions

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Compound interest typically yields more growth than simple interest as it calculates interest on both the initial principal and the accumulated interest from past periods. Simple interest, calculated only on the principal, results in less growth. For example, P50,000 at 7.5% compounded annually for five years results in significantly more than if calculated using simple interest .

Depreciation methods determine how the cost of an asset is allocated over its useful life, impacting reported expenses and asset valuations. In the straight-line method, equal depreciation is charged annually, reducing the asset's book value evenly over time. For instance, an asset with a cost of P50,000 and a salvage value of P10,000 over ten years will have a book value of P30,000 after five years .

Sustainable growth can be evaluated using amortization schedules which outline how loan repayments are structured over time, balancing principal and interest payments. This affects cash flow and financial stability. Evaluating Mr. Cruz's semi-annual payment plan over the next five years at a 10% interest compounded semi-annually provides insights into managing liabilities versus business growth .

Determining the breakeven point is essential to understand at what point revenues will cover all fixed and variable costs, eliminating losses and starting to generate profit. This knowledge is used for pricing strategies, cost control, and investment planning. For example, if a machine's maintenance and production costs are known, the number of units to be forged at a selling price of P125 each that will ensure costs are covered (breaking even) can be calculated .

To calculate the annual payment for a sinking fund, the future value equation is used considering the total amount needed, the interest rate, and the compounding frequency. For instance, if 50 bonds of P1,000 each need to be redeemed in 15 years with a fund earning 4% annually, the annual payments ensure the correct principal accumulation by the 12th year .

Promissory notes offer a formal promise to pay a specified amount at a future date, impacting cash flow and financial obligations. Understanding them helps in managing loan repayments and assessing the net proceeds from discounted notes, as noted when Agnes Abanilla's P20,000 loan was provided with interest collected in advance .

The frequency of compounding impacts the total interest earned, as more frequent compounding results in more interest due to the effect of interest on previously accrued interest. A nominal rate produces a higher effective rate with increased compounding frequency. For instance, a nominal interest rate of 11.25% compounded monthly results in more interest over a period than annually compounded interest .

Present value calculations allow decision-makers to account for the time value of money, evaluating the worth today of future cash inflows. This is crucial for assessing investment opportunities and ensuring that cash received in the future is considered against current financial planning. For instance, the present value of P100,000 to be paid in 10 years at a rate of 12% compounded quarterly helps in understanding the investment's comparative value today .

The future worth of money with simple interest is calculated using the formula: Future Worth = Principal + (Principal × Rate × Time). For example, if P25,000 is invested at a simple interest rate of 1% per month for 12 months, the future worth is P25,000 + (P25,000 × 0.01 × 12), resulting in a future worth of P28,000 .

The effective interest rate accounts for compounding within the year, unlike the nominal rate which does not. The effective rate can be higher than the nominal rate when interest is compounded more frequently. For example, a nominal rate of 9.5% compounded annually yields an effective rate of 9.84% if interest is compounded quarterly .

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