Long Quiz in

Basic Finance

Name:
Year and Section:

Test I. Computation

Direction: Compute for the following problem. Write your answer with solution on the space being
provided after each items.

1. Angel deposits Php 4,000 at a bank at an interest rate of 4.5% per year. How much interest will
she earn at the end of 3 years? How about the future value of the deposit? (5 pts)

2. Nerissa borrowed Php3,000 from a bank at an interest rate of 12% per year for a 2-year period.
How much interest does she have to pay the bank at the end of 2 years? How about the future
value of the deposit? (5 pts)

3. Raymond bought a car for Php40, 000. He took a Php20,000 loan from a bank at an interest rate
of 15% per year for a 3-year period. What is the total amount (interest and loan) that he would
have to pay the bank at the end of 3 years? (5 pts)

4. If you invest Php3,500 in savings account that pays 4% simple interest, how much interest will
you earn after 3 years? What will the new balance be? (5 pts)
5. If you deposit Php4,000 into an account paying 6% annual interest compounded quarterly, how
much money will be in the account after 5 years? (5 pts)

6. How much money would you need to deposit today at 9% annual interest compounded monthly
to have $12000 in the account after 6 years? (5 pts)

7. If you deposit $4500 at 5% annual interest compounded quarterly, how much money will be in
the account after 10 years? (5 pts)

8. A credit card company charges 21% interest per year, compounded monthly. What effective
annual interest rate does the company charge? (5 pts.)

9. Dummy is quoted a nominal interest rate of 9.15% per annum compounded every four months
on her investment of Php85 000. Calculate the effective rate per annum. (5 pts)

10. Find the Present Value of $100 to be received 3 years from today if the interest rate is 10%. (5
pts.)
 11. Gon’s Shop had sales of P1,000,000 in 2018. The Cost of Goods Sold was P600,000,
Administrative Expenses were P100,000, Interest Expense was P50,000 and Depreciation
expense was P100,000. The firm’s tax rate was 35%. Calculate for the operating income, gross
profit, and net income. (15 pts)

12. The data for Killua Company for the month of January are as follows:

Inventory ……………………….P1,000
Accounts receivables………. 3,200
Cash………………………………... 5,800
Land and Building……………. 2,000,000
Furniture…………………………. 12,000
Machinery ………………………. 18,000
Investments ……………………. 120,000
Accounts payables…………… 20,000
Loans payables………………… 440,000
Capital, end……………………… 1,700,000

Required: Prepare a balance sheet using the data given above. (25 pts.)