5 Questions
What is the difference between ordinary simple interest and exact simple interest?
Ordinary Simple Interest is computed on the basis of 12 months, 30 days each, while Exact Simple Interest is computed based on the exact number of days in a given year.
What is compound interest?
Interest calculated on the principal plus the previous accumulated interest.
What does discount represent in the context of engineering economy?
The difference between the amount a borrower receives in cash (present worth) and the amount he pays in the future (future worth).
What does nominal rate of interest specify?
The basic annual rate of interest and the number of interest periods in one year.
When is simple interest usually used?
For short-term loans where the period is measured in days.
Test your knowledge of engineering economy and simple interest with this quiz. Explore the analysis and evaluation of factors affecting the economic success of engineering projects, as well as the computation of simple interest on short-term loans.
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