The document outlines two engineering economy problems concerning property bids and debt repayment. The first problem involves comparing two bids for a property based on present value calculations with different payment structures. The second problem addresses a debt repayment scenario involving a series of payments to discharge a loan with interest.

1. Seatwork #1
January 29, 2024
Engineering Economy

2. 1. (10 points) A certain property is being sold and the owner received two bids. The
1st
bidder offered to pay P500,000 each year for 5 years, each payment is to be
made at the beginning of each year. The 2nd
bidder offered to pay P400,000 first
year, Php 510,000 the second year, and P530,000 each year for the next 3
years, all payments will be made at the beginning of each year. If money is worth
20% compounded quarterly, which bid should the owner of the property accept?
2. (10 points) A debt of P50,000, whose interest rate is 15% compounded
semiannually, is to be discharged by a series of 10 semiannual payment, the first
payment to be made 6 months after the consummation of the loan. The first 6
payments will be P5,000 each, while the remaining 4 payments will be equal and
of such amount that the final payment will liquidate the debt. What is the amount
of the last 4 payments?