Learn Engineering Economics MCQ questions & answers are available for a Civil Engineering students to clear GATE exams, various technical interview, competitive examination, and another entrance exam. Engineering Economics MCQ question is the important chapter for a Civil Engineering and GATE students. Page-7 section-3
Each section contains 100 MCQs on
Engineering Economics .
It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate?