Q$11.$ Choose the correct statement from the following

$$ Capital refers to wealth in the form of money or property that be used to produce more wealth.

$$ The original investment $($or loan$)$ is referred to as principal.

$$ Both $($a$)$ and $($b$)$ are correct.

$$ None of the above is correct.

Q$12.$ Choose the correct statement from the following

$$ Engineering economy studies involve the commitment of capital for extended periods of time.

$$ Return to capital in the form of interest and profit is an essential ingredient of engineering economy studies.

$$ Any project or venture must provide a sufficient return to be financially attractive to the suppliers of money or property.

$$ All of the above statements are correcting

Q$13.$ Whenever the interest charge for any interest period $($a year, for example$)$ is based on the remaining principal amount plus any accumulated interest charges up to the beginning of that period, the interest is said to be

$$ Compound interest

$$ Simple interest

$$ Annuity

$$ Perpetuity

Q$14.$ When the total interest earned or charged is linearly proportional to the initial amount of the principal, the interest rate, and the number of interest periods, the interest and interest rate are said to be

$$ Compound interest

$$ Simple interest

$$ Both $($a$)$ and $($b$)$ are correct

$$ None of the above is correct

Q$15.$ It is a series of equal payments that do not begin until sometime in the future.

$$ Deferred annuity

$$ Delayed annuity

$$ Progressive annuity

$$ Simple annuity