Day3 Part6

241.912. a deposit of P110,000 was made for 31 days.
The net interest

after deducting 20% withholding tax is P890.36. find the rate of
return annually.
A. 11.95% B.12.75% C. 11.75% D. 12.25%
242.913. agnes abanilla was granted a loan of P20,000 by her employer

CPM industrial fabricator and construction corporation with an
interest of 6% for 180days on the principal collected in advance. The
corporation would accept a promisory note for P20,000 non-interest for
180days. If discounted at once, find the proceeds of the note
A. P18,600 B. P18,800 C. P19,000 D. P19,200
243.914. what will be the future worth of money after 12months, if the
sum of P25,000 is invested today at simple interest rate of 1% per
month?
A. 30,000 B. 29,000 C. 28,000 D. 27859
245.916. annie buys a television set from a merchant who ask 1,250 at
the end of 60days. Annie wishes to pay immediately and the merchant
offers to compute the cash price on the assumption that money is worth
8% simple interest. What is the cash price?
A. 1233.55 B. 1244.66 C. 1323.66 D. 1392.67
246.917. it is the practice of almost all banks in the phil that when
they grant a loan, the interest for one year is automatically deducted
from the principal amount upon release of money to a borrower. Let us
therefore assume that you applied for a loan with a bank and the
80,000 was approved at an interest rate of 14% of which 11,200 was
deducted and you were given a check of 68800. Since you have to pay
the amount of 80,000 one year after, what then will be the effective
interest rate?
A. 15.9% B. 16.28 C. 16.3 D. 16.2
247.918. a man borrowed 20,000 from a local commercial bank which has
a simple interest of 16% but the interest is to be deducted from the
loan at the time that the money was borrowed and the loan is payable
at the end of one year. How much is the actual rate of interest.
A. 12% B. 14 C. 10 D. 19
253.930. alexander Michael owes 25,000 due in 1 year and 75,000 due in
4 years. He agrees to pay 50,000 today and the balance in 2 years. How
much must he pay at the end of two years if money is worth 5%
compounded semi-annually?
A. 38025.28 B. 35021.25 C. 30500.55 D.39021.28
254.932. how long(in years) will it take money to quadruple if it

earns 7% compounded semi-annually?
A. 20.15 B. 26.3 C. 33.15 D. 40.3
256.936. a firm borrows 2,000 for 6 years at 8%. At the end of 6
years, it renews the loan for the amount due plus 2,000 more for 2
years at 8%. What is the lump sum due?
A. 5355 B. 5892 C. 6035 D. 6135
257.947. in year zero, you invest 10,000 in a 15% security for 5

years. During that time, the average annual inflation is 6%. How much,
in terms of year zero pesos will be in the account at maturity?
A. 12020 B. 13030 C. 14040 D. 15030
258.951. a man purchased on monthly instalment a 100,000 worth of

land. The interest rate is 12% nominal and payable in 20 years. What
is the monthly amortization?
A. 1101.08 B. 1121.01 C. 1152.15 D. 1128.12
259.952. money borrowed today is to be paid in 6 equal payments at the

end of 6 quarters. If the interest is 12% compounded quarterly. How
much was initially borrowed if quarterly payment is 2,000
A. 10834.38 B. 10382.9 C. 10586.99 D.10200.56
260.953. you need 4,000 per year for four years to go to college. Your
father invested 5,000 in 7% account for your education when you were
born. If you withdraw 4,000 at the end of your 17th, 18th, 19th and 20th
birthday, how much will be left in the account at the end of 21st year?
A. 1700 B. 2500 C. 3400 D. 4000
261.954. what is the accumulated amount of five year annuity paying

6000 at the end of each year, with interest at 15% compounded
annually?
A. 40454.29 B. 41114.29 C. 41454.29 D.40544.29
262.955. how much must be deposited at 6% each year beginning on

January 1, year 1, in order to accumulate 5000 on the date of the last
deposit. January 1,year 6?
A. 751 B. 717 C. 715 D. 725
263.956. a debt of 10,000 with 10% interest compounded semi-annually

is to be amortized by semi-annual payment over the next 5 years. The
first due is 6 months. Determine the semi-annual payment.
A. 1200 B. 1295.05 C. 1193.9 D. 1400.45
264.957. a young engineer borrowed 10,000 at 12% interest and paid

2000 per annum for the last 4 years. What does he have to pay at the
end of the fifth year in order to pay off his loan?
A. 6919.28 B. 5674 C. 6074 D. 3296
265.958. mr cruz plans to deposit for the education of his 5 years old
son, 500 at the end of each month for 10 years at 12% annual interest
compounded monthly. The amount that will be available in two years is
A. 13000 B. 14500 C. 13500 D. 14000
266.959. if you obtain a loan of 1M at the rate of 12% compounded
annually in order to build a house, how much must you pay monthly to
amortize the loan within a period of ten years?
A. 13994.17 B. 12955.21 C. 15855.45 D.12900.25
267.960. how much must you invest today in order to withdraw 2000
annually for 10 years if the interest rate is 9%?
A. 12853.32 B. 12881.37 C. 12385.32 D.12835.32
270.963. a housewife bought a brand new washing machine costing 12,000

if paid in cash. However she can purchase it on instalment basis to be
paid within 5 years. If money is worth 8% compounded annually, what is
her yearly amortization if all payments are to be made at the
beginning of each year?
A. 2782.85 B. 2872.58 C. 2400 D. 2827.58
271.964. mr ayala borrows 100,000 at 10% effective annual interest. He

must pay back the loan over 30 years with uniform monthly payments due
on the first day of each month. What does mr ayala pay each month
A. 870 B. 846 C. 878 D. 839
273.966. a piece of machinery can be bought for 10,000 cash or for

2,000 down and payments of 750 per year for 15 years. What is the
annual interest rate for the time payments?
A. 4.61% B. 3.81% C. 5.71% D. 11%
276.969. an instructor plans to retire in exactly one year and want an

account that will pay him 25,000 a year for the next 15 years.
Assuming a 6% annual effective interest rate, what is the amount he
would need to deposit now?( the fund will be depleted after 15 years)
A. 249000 B. 242806 C. 248500 D. 250400
277.970. an investment of 350,000 is made to be followed by payments

of 200,000 each year for 3 years. What is the annual rate of return on
investment for the project?
A. 41.7% B. 32.7% C. 51.1% D. 15%
278.971. a small machine has an initial cost of 20,000, a salvage

value of 2000 and a life of 10 years. If your cost of operation per
year is 3500 and your revenues per year is 9000, what is the
approximate rate of return (ROR) on the investment?
A. 25% B. 22.5 C. 23.9 D. 24.8
279.972. a man paid 10% down payment of 200,000 for a house and lot
and agreed to pay the balance on monthly instalments for “x” years at
an interest rate of 15% compounded monthly. If the monthly instalment
was 42,821.87, find the value of x
A. 11 B. 9 C. 5 D. 7
280.973. a manufacturing firm wishes to give each 80 employees a
holiday bonus. How much is needed to invest monthly for a year at 12%
nominal interest rate compounded monthly, so that each employee will
receive a 2000 bonus?
A. 12608 B. 12610 C. 12600 D. 12300
281.974. find the present value in pesos, of a perpetuity of 15,000

payable semi-annually if money is worth 8% compounded quarterly.
A. 372,537 B. 374,977 C. 373,767 D. 371,287
282.977. a unit of welding machine cost 45,000 with an estimate life

of 5 years. Its salvage value is 2500. Find its depreciation rate by
straight-line method
A. 17.75% B. 19.88% C. 18.89% D. 15
283.979. the initial cost of a paint sand mill, including its

installation, is 800,000. The BIR approved life of this machine is 10
years for depreciation. The estimated salvage value of the mill is
50,000 and the cost of dismantling is estimated to be 15,000. Using
straight line depreciation, what is the annual depreciation charge and
what is the book value of the machine at the end of six years?
A. 74,500:340,250B. 76,500:341,000C.76,500:342,500D. 77500:343250
284.983. an equipment cost 10,000 with a salvage value of 500 at the

end of 10 years. Calculate the annual depreciation cost by sinking
fund method at 4% interest
A. 791.26 B. 950 C. 971.12 D. 845.32
285.984. a machine costing 720,000 is estimated to have a book value

of 40,545.73 when retire at the end of 10 years. Depreciation cost is
computed using a constant percentage of the declining book value. What
is the annual rate of depreciation in %?
A. 28 B. 25 C. 16 D. 30
286.985. a machine costing 45,000 is estimated to have a book value of

4,350 when retired at the end of 6 years. Depreciation cost is
computed using a constant percentage of the declining book value. What
is the annual rate of depreciation in %?
A. 33.25% B. 32.25% C. 35.25% D. 34.25%
287.986. ABC corporation makes it a policy that for a new equipment

purchased, the annual depreciation cost should not exceed 20% of the
first cost at any time with no salvage value. Determine the length of
service life necessary if the depreciation used is SYD method.
A. 9 years B. 10 C. 12 D. 19
288.987. a company purchases an asset for 10,000 and plans to keep it

for 20 years. If the salvage value is zero at the end of the 20th year,
what is the depreciation in the third year? use SYD method
A. 1,000 B. 857 C. 937 D. 747
289.991. at 6%, find the capitalized cost of a bridge whose cost is
250M and life is 20 years, if the bridge must be partially rebuilt at
a cost of 100M at the end of each 20 years.
A. 275.3M B. 265.5M C. 295.3M D. 282.1M
291.993. a company must relocate one of its factories in three years.

Equipment for the loading dock is being considered for purchase. The
original cost is 20,000, the salvage value of the equipment after 3
years is 8000. The company’s rate of return on the money is 10%.
Determine the capital recovery rate per year.
A. 5115 B. 4946 C. 5625 D. 4805
292.994. the annual maintenance cost of a machine shop is 69,994. If

the cost of making a forging is 56 per unit and its selling price is
135 per forged unit, find the number of units to be forged to break
even
A. 886 B.885 C. 688 D. 668

Day3 Part6

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Day3 Part6

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241.912. a deposit of P110,000 was made for 31 days.

The net interest

242.913. agnes abanilla was granted a loan of P20,000 by her employer

254.932. how long(in years) will it take money to quadruple if it

257.947. in year zero, you invest 10,000 in a 15% security for 5

258.951. a man purchased on monthly instalment a 100,000 worth of

259.952. money borrowed today is to be paid in 6 equal payments at the

261.954. what is the accumulated amount of five year annuity paying

262.955. how much must be deposited at 6% each year beginning on

263.956. a debt of 10,000 with 10% interest compounded semi-annually

264.957. a young engineer borrowed 10,000 at 12% interest and paid

270.963. a housewife bought a brand new washing machine costing 12,000

271.964. mr ayala borrows 100,000 at 10% effective annual interest. He

273.966. a piece of machinery can be bought for 10,000 cash or for

276.969. an instructor plans to retire in exactly one year and want an

277.970. an investment of 350,000 is made to be followed by payments

278.971. a small machine has an initial cost of 20,000, a salvage

281.974. find the present value in pesos, of a perpetuity of 15,000

282.977. a unit of welding machine cost 45,000 with an estimate life

283.979. the initial cost of a paint sand mill, including its

284.983. an equipment cost 10,000 with a salvage value of 500 at the

285.984. a machine costing 720,000 is estimated to have a book value

286.985. a machine costing 45,000 is estimated to have a book value of

287.986. ABC corporation makes it a policy that for a new equipment

288.987. a company purchases an asset for 10,000 and plans to keep it

291.993. a company must relocate one of its factories in three years.

292.994. the annual maintenance cost of a machine shop is 69,994. If

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