Geas Engineering Economy

Front 1

12.07%

Back 1

A businessman wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

Front 2

18%

Back 2

Dalisay Corporation’s gross margin is 45% of sales. Operating expenses such as sales and administration are 15% of sales. Dalisay Corporation is in 40% tax bracket. What percent of sales is their profit after taxes?

Front 3

6.58%

Back 3

By selling balut at P5 per dozen, a vendor gains 20%. The cost of the eggs rises by 12.5%. If he sells at the same price as before, find his new gain in %.

Front 4

P32,000

Back 4

In a certain department store, the monthly salary of a saleslady is partly constant and partly varies as the value of her sales for the month. When the value of her sales for the month is P10,000.00, her salary for the month is P900.00. When her monthly sales go up to P12,000.00, her monthly salary goes up to P1,000.00. What must be the value of her sales so that her salary for the month will be P2,000.00?

Front 5

37.5%

Back 5

The selling price of a TV set is double that of its net cost. If the TV set is sold to a customer at a profit of 25% of the net cost, how much discount was given to the customer?

Front 6

P12,000 per cubic meter

Back 6

The quarrying cost of marble and granite blocks plus delivery cost to the processing plant each is P2,400.00 per cubic meter. Processing cost of marble into tile is P200.00 per square meter and that of the granite into tiles also is P600.00 per square meter.If marble has a net yield of 40 square meters of tile per cubic meter of block and sells P400 per square meter, and granite gives a net yield of 50 square meters of tiles per cubic meter of block and sells at P1000 per square meter. Considering all other costs to be the same, the granite is more profitable than the marble by how much?

Front 7

P860

Back 7

A 220 V 2 hp motor has an efficiency of 80%. If power costs P3.00 per kw-hr for the first 50 kw-hr, 2.90 per kw-hr for the second 50 kw-hr, P2.80 for the third kw-hr and so on until a minimum of P2.50 per kw-hr is reached. How much does it cost to run this motor continuously for 7 days?

Front 8

4.90

Back 8

An electric utility purchases 2,300,000 kw-hr per month of electric energy from National Power Corporation at P2.00 per kw-hr and sells all this to consumers after deducting distribution losses of 20%. At what average rate per kw-hr should this energy be sold to break even if the following are other monthly expenses in its operation: Taxes--2.5 % of gross revenueSalaries--P750,000Depreciation--P2,250,000Interest--P700,000Maintenance--P300,000Miscellaneous--P200,000

Front 9

28.33%

Back 9

A fixed capital investment of P10,000,000 is required for a proposed manufacturing plant and an estimated working capital of P2,000,000. Annual depreciation is estimated to be 10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P2,500,000.

Front 10

P1,916,858.24

Back 10

Upon the retirement after 44 years in government service, Mrs. Salud Araoarao was able to get a retirement lump sum of P2,300,000. As a hedge against inflation, she decided to use a part of it invested in real state at Pagadian City and the remainder were invested as follows: 1.)30% in T-bills earning 12% interest2.)35% in money market placement earning 14%3.)35% in blue chip stock earning 13% If her annual earnings from the T-bills, money market and stock is P50,000, How much did she invests in real estate?

Front 11

Processing method A

Back 11

Front 12

P473,000

Back 12

A paint manufacturing company uses a sand mill for fine grinding of paint with an output of 100 liters per hour using glass beads as grinding media. Media load in the mill is 25 kg costing P200.00 per kg and is fully replenished in 2 months time at 8 hours per day operation, 25 days a month. A ceramic grinding media is offered to this paint company, costing P400 per kg and needs 30 kg load in the sand mill, but guarantees an output of 120 liters per hour and full replenishment of media in 3 months. If profit on paint reduction is P15 per liter how much is a difference in profit between the two media?

Front 13

25.0%

Back 13

You loan from a loan firm an amount of P100,000 with a rate of simple interest of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, you have to pay the full amount of P100,000, what is the actual rate of interest?

Front 14

P46,728.97

Back 14

If you borrowed money from your friend with simple interest at 12%, find the present worth of P50,000, which is due at the end of 7 months.

Front 15

P11,800

Back 15

If you borrowed P10,000 from a bank with 18% interest per annum, what is the total amount to be repaid at the end of one year?

Front 16

4%

Back 16

A man borrowed P2,000 from a bank and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected an advance interest of P80.00. What was the rate of discount?

Front 17

P25,250

Back 17

What will be the future worth of money after 12 months if the sum of P25,000 is invested today at simple interest rate of 1% per year?

Front 18

16.28%

Back 18

It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate?

Front 19

P5,166.67

Back 19

P5,000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at the end of 75 days?

Front 20

19.05%

Back 20

A man borrowed P20,000 from a local commercial bank which has a simple interest of 16% but the interest is to be deducted from the loan at the time that the money was borrowed and the loan is payable at the end of one year. How much is the actual rate of interest?

Front 21

Annuity

Back 21

It is a series of equal payments occurring at equal interval of time.

Front 22

Monopsony

Back 22

A market whereby there is only one buyer of an item for which there are no goods substitute

Front 23

Break even – no gain no loss

Back 23

The total income equals the total operating cost.

Front 24

Prime cost

Back 24

Direct labor costs incurred in the factory and direct material costs are the costs of all materials that go into production. The sum of these two direct costs is known as:

Front 25

Depreciation

Back 25

Artificial expenses that spread the purchase price of an asset or another property over a number of years.

Front 26

Salvage value

Back 26

Estimated value at the end of the useful life.

Front 27

Physical inventory

Back 27

Consists of the actual counting or determination of the actual quantity of the materials on hand as of a given date.

Front 28

Bid bulletin

Back 28

Additional information of prospective bidders on contract documents issued prior to bidding date.

Front 29

Perpetuity

Back 29

A series of uniform accounts over an infinite period of time.

Front 30

Acid-test ratio

Back 30

An index of short term paying ability is called:

Front 31

14.49%

Back 31

What is the effective rate of 14% compounded semi-annually?

Front 32

P13,265.83

Back 32

A man expects to receive P25,000 in 8 years. How much is that money worth now considering interest at 8% compounded quarterly?

Front 33

5.96%

Back 33

Compute the equivalent rate of 6% compounded semi-annually to a rate compounded quarterly.

Front 34

57 Years

Back 34

By the condition of a will, the sum of P20,000 is left to a girl to be held in trust fund by her guardian until it amounts to P50,000. When will the girl receive the money if the fund is invested at 8% compounded quarterly?

Front 35

P705.42

Back 35

A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th

Front 36

P4,626.12

Back 36

A merchant puts in his P2,000.00 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 at the end of the sixth year?

Front 37

Quarterly

Back 37

Mandarin Bank advertises 9.5% account that yields 9.84% annually. Find how often the interest is compounded.

Front 38

P1,549.64

Back 38

A student plans to deposit P1,500.00 in the bank now and another P3,000.00 for the next 2 years. If he plans to withdraw P5,000.00 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%.

Front 39

P13,498.59

Back 39

A nominal interest of 3% compounded continuously is given on the account. What is the accumulated amount of P10,000 after 10 years?

Front 40

P4,631.93

Back 40

Funds are deposited in a savings account at an interest of 8% per annum. What is the initial amount that must be deposited to yield a total of P10,000 in 10 years?

Front 41

7.71%

Back 41

An interest rate is quoted as being 7.5% compounded quarterly. What is the effective annual interest rate?

Front 42

P2,158.92

Back 42

A deposit of P1,000 is made in a bank account that pays 8% interest compounded annually. Approximately how much money will be in the account after 10 years?

Front 43

Chicago Bulls’ offer is over $150,000 per year than that of LA Lakers’

Back 43

An NBA Basketball superstar, playing for Los Angeles Lakers is earning an average annual salary of $5,000,000 for 10 years. Chicago Bulls ball club would like to acquire his services as a replacement of the retired Michael Jordan, offered him an initial annual salary of $3,000,000 but is increasing at the rate of $400,000 annually. If he can still play in the NBA for 10 years and money is worth 10%, which one is true?

Front 44

Joan, P763.27

Back 44

Two sisters, Joan and Jocelyn decided to save money in funds that earns 14% compounded annually but on different ways. Joan decided to save by making an end-of-year deposit of P1,000 on the first year, P1,100 on the second year, P1,210 on the third year and so on increasing the next year’s deposit by 10% of the deposit in the preceding year until the end of the 10th Jocelyn decided to save by just making an equal deposit of P1,400 annually for 10 years. Who has more savings at the end of 10 years and by how much bigger compared to the other sister?

Front 45

P106,101.37

Back 45

A newly-acquired equipment requires an annual maintenance costs of P10,000. If the annual maintenance cost is increased by 20% each year every year for 10 years, what is the estimated present worth of the maintenance costs if money is worth 15%?

Front 46

Economic return

Back 46

The profit derived from a project or business enterprise without consideration of obligations to financial contributors or claims of other based on profit.

Front 47

Rate of return

Back 47

The interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment.

Front 48

Effective interest

Back 48

The true value of interest rate computed by equations for compound interest for a 1 year period is known as:

Front 49

Salvage value

Back 49

What is sometimes called second-hand value?

Front 50

P37,520.34

Back 50

A company issued 50 bonds of P1,000.00 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?