Renewable Energy Engineering (2181910) MCQs

MCQs of Economic Analysis

Showing 11 to 20 out of 35 Questions
1 2 3 4
11.
Simple interest is
(a) directly proportional to capital involved, the number of interest periods and the interest rate
(b) inversely proportional to capital involved, the number of interest periods and the interest rate
(c) sum of capital involved, the number of interest periods and the interest rate
(d) none of the above
Answer:

Option (a)

12.
When the simple interest is added to the principal amounts so that the resulting amount becomes the principal amount for the next term, the interest so obtained is called
(a) simple interest
(b) compound interest
(c) principal amount + simple interest
(d) none of the above
Answer:

Option (b)

13.
What will be the amount if Rs 2,000 invested at 12% interest is compounded annually at the end of 6 years?
(a) Rs 3948
(b) Rs 4948
(c) Rs 3489
(d) Rs 4489
Answer:

Option (a)

14.
The process used in converting the future value to its present value is called
(a) compounding
(b) discounting
(c) inflation
(d) none of the above
Answer:

Option (b)

15.
The total amount of money borrowed (or invested), not including any interest or dividends is known as
(a) principal amount
(b) interest
(c) cost of capital
(d) cash flow
Answer:

Option (a)

16.
The amount charged on top of the principal by a lender to a borrower for the use of assets is called
(a) principal amount
(b) interest rate
(c) cost of capital
(d) cash flow
Answer:

Option (b)

17.
The interest is applied to the principal but also to the accumulated interest of previous periods in known as
(a) compound interest
(b) simple interest
(c) principal amount
(d) none of the above
Answer:

Option (c)

18.
The rate at which prices increase over time, resulting in a fall in the purchasing value of money is known as
(a) cost of capital
(b) interest rate
(c) inflation rate
(d) none of the above
Answer:

Option (c)

19.
For comparing profitability of two projects having different useful lives, the best method of analysis
(a) net present value
(b) internal rate of return
(c) benefit to cost ratio
(d) annual equivalent amount
Answer:

Option (d)

20.
Inflation of the cost of fuel each year by a constant percentage rate can be modeled by
(a) uniform series
(b) uniform gradient series
(c) geometric gradient series
(d) single payment at the end of n-year
Answer:

Option (c)

Showing 11 to 20 out of 35 Questions
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