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


bDeduction


cInflation


dDepletion


View Answer Discount

One banker’s year is equivalent to ________________ days?


a300


b360


c365


d366


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


bNominal rate of interest


cCompound interest


dSimple interest


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


bInterest rate


cTime value of money


dYield


View Answer Time value of money

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


aTotal fair value


bTotal market value


cGoing concern value


dEarning value


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


b Nominal rate of interest


cCompound interest


d Simple interest


View Answer Compound interest

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


aInterest


bRate of interest


cSimple interest


dPrincipal


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


bRate of return


cRate of interest


dEconomic return


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


b Interest rate


cYield


dRate of return


View Answer Interest rate

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


aAnnuity


bAmortization


cDepreciation


dBond


View Answer Annuity

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