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Civil Engineering Objective Questions { Engineering Economics }

1. If P is principal amount, i is the rate of interest and n is the number of periods in years, then the interest factor is:
A. (1 + ni)
B. (ni ? 1)
C. ni
D. None of these

2. The interest calculated on the basis of 365 days a year, is known as :
A. interest
B. ordinary simple interest
C. exact simple interest
D. None of these

3.  The product of CAF (S P) and PWF (SP) is :
A. 1/2
C. 1/3

4.  Pick up the correct statement from the following :
A. An annuity is a serious of equal payments occurring at equal period of time.
B. Annuity is called an equal payment or uniform payment series.
C. An annuity may have periods of time of any length but should always be of equal length.
D. All the above.

5. Annuities involve :
A. a series of payments
B. all payments of equal amount
C. payment at equal time intervals
D. All of these

6. The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodic payments, is known as ;
A. Present Worth Annuity
B. Sinking fund annuity
C. Compound annuity
D. Capacity recovery annuity

7.  If a seller recovers his capital along with accumulated compensating interest not in one single lumpsum payment but in periodical equal payments, over time :
A. Capital Recovery Annuity is availed
B. Present work Annuity is availed
C. Sinking Fund Annuity is availed
D. Sinking Fund Annuity is availed

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