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`