Civil Engineering MCQs

Page No. 71

The difference between the present and future worth of money at some time in the future is called __________________?


aDiscount

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bDeduction

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cInflation

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dDepletion

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View Answer Discount

One banker’s year is equivalent to ________________ days?


a300

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b360

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c365

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d366

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View Answer 360

What is defined as the interest on a load or principal that is based only on the original amount of the loan or principal ?


aEffective rate of interest

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bNominal rate of interest

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cCompound interest

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dSimple interest

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View Answer Simple interest

What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn ?


aPresent worth factor

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bInterest rate

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cTime value of money

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dYield

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View Answer Time value of money

What refers to the present worth of the probable future net earnings ?


aTotal fair value

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bTotal market value

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cGoing concern value

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dEarning value

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View Answer Earning value

What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest ?


aEffective rate of interest

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b Nominal rate of interest

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cCompound interest

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d Simple interest

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View Answer Compound interest

What refers to the amount of money paid for the use of borrowed capital ?


aInterest

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bRate of interest

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cSimple interest

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dPrincipal

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View Answer Interest

What refers to the cost of borrowing money or the amount earned by a unit principal per unit time ?


a Yield rate

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bRate of return

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cRate of interest

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dEconomic return

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View Answer Rate of interest

What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal ?


aReturn of investment

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b Interest rate

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cYield

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dRate of return

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View Answer Interest rate

A uniform series of payment occurring at equal interval of time is called ____________________?


aAnnuity

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bAmortization

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cDepreciation

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dBond

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View Answer Annuity

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