#### Chemical Engineering plant Economics

1

An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be

A. 1000 (1 + 0.1/4)^20
B. 1000 (1 + 0.1)^20
C. 1000 (1 + 0.1/4)^5
D. 1000 (1 + 0.1/2)^5

2

The amount of compounded interest during 'n' interest periods is

A. P[(1 + i)^n - 1
B. P(1 + i)^n
C. P(1 - i)^n
D. P(1 - i^n)

3

If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by

A. (1 + i)^n /S
B. S/(1 + i)^n
C. S/(1 + in)
D. S/(1 + n)^i

4

According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with '' times the capacity of the first unit is approximately equal to __________ times the cost of the initial unit.

A. n
B. n^0.6
C. n^0.4
D. sqrt(n)

5

If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

A. R [((1 + i)^n -1)/(i)]
B. [ ((1 + i)^n - 1)/(i (1 + i)^n)]
C. R(1 + i)^n
D. R//(1 + i)^n