Republic of the Philippines

DON HONORIO VENTURA STATE UNIVERSITY

Villa de Bacolor, Pampanga

COLLEGE OF ENGINEERING AND ARCHITECTURE

Plate No. 1
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Engineering Economics
Name: David Q. Mambrebe Jr. Score: .
Yr. & Sec.: BSCE 2F Date: September 12, 2019.

GENERAL DIRECTION:

1. Answers with erasures will be returned

2. Write legibly using Engineering lettering
3. Use blue or black pen only
4. One (1) inch thick Border line shall be provided
5. No Printed answers. Everything should be hand written except for the front page and the tables.

I. Problem Solving

1. Kimmy is always being caught by almost any enemy assassin due to her old rugged jet pack. So, she bought a jet
pack which cost P.50,000.00. Delivery expenses cost her P.8,000.00. If the life of the jetpack is 10 years with an
estimated salvage value of P.10,000.00, find its book value every year. Money is worth 7%. Tabulate the data and
show yearly depreciation. (Use Sinking fund method)

2. Harley wants to enroll to a Prestigious magic school in the land of the dawn but he needs P.500,000.00 for him to
be enrolled. He decided to loan from his sister, Lesley, with an interest rate of 10% compounded-quarterly. If Harley
fails to pay his obligation during the next five(5) years, he will be hunted by her sister’s lover, Gusion. What amount “X”
must be paid quarterly so that he can pay the full amount in 5 years. Do this properly, Harley’s life depends on you!

3. Lance is planning to propose to his girlfriend, Odette, in Two (2) years. He plans to propose One (1) year from now.
His expenses for the proposal will be P.100,000.00 and P.1,000,000.00 for the wedding. He plans to create two (2)
Separate Sinking fund for the proposal and the wedding. The sinking fund for the proposal will be deposited to an
account earning 8% interest compounded monthly and the sinking fund for the wedding will be deposited to an account
earning 10% compounded monthly. How much is the monthly deposit in the first and second sinking fund? Draw the
sinking fund table.

“For we are taking pains TO DO WHAT IS RIGHT, NOT ONLY

IN THE EYES OF THE LORD BUT ALSO IN THE EYES OF
MAN.”