Top 350+ Solved Information systems and engineering economics MCQ Questions Answer
Q. You are considering purchasing a $1,000 bond with a coupon rate of 9.5%, interest payable annually. If the current inflation rate is 4% per year, which will continue in the foreseeable future, what would be the real rate of return if you sold the bond at $1,080 after 2 years?
a. about 9.5%
b. about 13.26%
c. about 9.26%
d. about 8.9%
Q. You are purchasing an automobile priced at $20,000 by borrowing at 12% interest compounded monthly. The loan will be repaid in monthly installments for five years. What is the constant dollar value (value at the time of financing) of the 36th payment of this loan, if the general inflation rate is 5% compounded monthly?
a. 361.91
b. 383.66
c. 444.89
d. 396.02
Q. ENGINEERING ECONOMICS INVOLVES
a. formulating
b. estimating
c. evaluating economic outcomes
d. all
Q. engineering economic decision is the evaluation of costs and benef associated with making a capital .
a. expenditure
b. investment.
Q. Initial amount of money in transactions involving debt or investments is called
a. interest
b. principal
Q. At 8% interest, what is the equivalent worth of $2,042 after 5 years from now?
a. -5000
b. -4000
c. -2000
d. -3000