601: MATHEMATICS SEATWORK 6
Situation:
1. What amount an employee should receive as a
bonus so that he should net P5000 after deducting
30% taxes?
a. 7241.90 c. 7521.90
b. 7142.90 d. 7942.10
Situation:
2. At what price should a merchant mark a sofa that
costs him P200 in order that he may offer a
discount of 15% on the marked price and still
make a profit of 25% on the selling price.
a. 313.73 c. 231.56
b. 188.23 d. 912.56
Situation:
3. At what price should a merchant mark a sofa that
costs him $120 in order that he may offer a
discount of 20% on the marked price and still
make a profit of 25% on the selling price.
a. 200 c. 210
b. 220 d. 230
Situation:
4. Which rate is best for an investor?
a. 5.5% compounded semi- c. 6% compounded
annually annually
b. 5% compounded monthly d. 5.3% compounded
quarterly
Situation:
5. The present worth of several future cash payments
may be defined as the sum of the values of the
future payments discounted at a given rate for the
corresponding period to the present. Find the
present value of installment payments of P1000
now, P2000 at the end of the first year, P3000 at
the end of the second year and P5000 at the end of
the fourth year, if money is worth 10%
compounded annually.
a. 8712.59 c. 11700.85
b. 11717.85 d. 11700
Situation:
6. It is the practice of almost all banks in the
Philippines 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 amount of
P80,000 was approved at an interest rate of 14% of
which P11,200 was deducted and you were given a
check of P68,800. Since you have to pay the
amount of P80,000 one year after, what then will
be the effective interest rate?
a. 17.675% c. 16.279%
b. 15.842% d. 18.896%
Situation:
7. The average annual cost of damages caused by
floods to a certain subdivision located along the
Pasig river is estimated at P700,000. To build a
gravity dam to protect the area from the floods,
would cost P2,500,000 and would involve an
annual maintenance cost of 20,000. With interest
at 8% compounded annually, how many years will
it take for the dam to pay for itself?
a. 4.32 years c. 4.53 years
b. 4.20 years d. 4.80 years
Situation:
8. A mechanical engineering student borrowed
P2,000 to meet college expenses during his senior
year. He promised to repay the loan with interest
at 4.5% in 10 equal semi-annual installments, the
JANUARY 28, 2020
first payment to be made 3 years after the date of
the loan. How much will this payment be?
a. 325.50 c. 126.17
b. 267.89 d. 252.12
Situation:
9. XYZ Inc. plans to construct an additional building
at the end of 10 years for an estimated cost of P5
million. To accumulate this amount, it will make
equal year-end deposits in a fund earning 13%.
However, at the end of the 5th year, it was decided
to have a larger building than originally intended
to an estimated cost of P8 million. What should be
the annual deposit for the last five years?
a. 734,391.41 c. 231,987.00
b. 764,756.20 d. 456,732.11
Situation:
A plastic manufacturing company intends to expand
its production facilities starting 1989. The program
requires the following estimated expenditures
P1million at the end of 1983
P1.2million at the end of 1990
P1.5million at the end of 1993
To accumulate the required funds, it established a
sinking fund consisting of fifteen uniform annual
deposits, the first deposit having been made at the end
of 1979. The interest rate of the fund is 12% per
annum.
10. Calculate the annual deposit
a. 168,771.73 c. 154,677.10
b. 136,677.12 d. 231,546.00
11. What will be the balance in the fund on January 1,
1990?
a. P1,512,087.06 c. P2,453,353.56
b. P1,259,675.90 d. P1,234,427.65
Situation:
12. A man was offered a Land Bank certificate with a
face value of P100,000 bearing an interest of 8%
per year payable semi-annually and due in 6 years.
If he wants to earn 8% effective semi-annual
interest, how much must he pay the certificate?
a. 86,856.70 c. 23,456.89
b. 69,855.69 d. 45,456.90
Situation:
13. A fully secured loan of P30,000 was to be amortized
by 10 equal semi-annual payments, the first
payment to be made 6 months after the loan
finalization. After the 6th payment was made, the
debtor was in a position to settle the entire debt
balance by a single payment on that date. If the
interest on the loan is 12% compounded semi-
annually, what would be the amount of this single
payment?
a. 18,213.89 c. 14,123.91
b. 11,312.88 d. 23,456.91
Situation:
A fixed capital investment of 10million is required for
a proposed manufacturing plant and estimated to be
10% of the fixed capital investment.
14. Determine the rate of return on the total
investment if annual revenue is 2.5million.
a. 10.50% c. 9.50%
b. 12.50% d. 15.00%
15. Determine the minimum payout period if the
annual profit is P2.5million.
a. 5 years c. 4 years
b. 3 years d. 6 years
601: MATHEMATICS SEATWORK 6 JANUARY 28, 2020
Situation:
16. If P10million pesos is deposited each year for 9
years, how much annuity can a person get
annually from the bank every year for 8 years
starting 1 year after the 9th deposit is made? Cost
of money is 14%.
a. P23,546.19 c. P10,000.00
b. P12,676.20 d. P34,675.18

Situation:
A company has approved a car plan for its six senior
officers in which the company will shoulder 25% of the
cost and the difference payable by each officer to a
financing company in 48 equal end-of-the-month
installments at an interest rate of 1.5% per month. If
the cost of each car is P350,000.
17. Compute the amount the company will have to
shoulder.
a. P123,000 c. P525,000
b. P768,000 d. P123,003.90
18. How much will each officer monthly payments?
a. P9,343.56 c. P1,344.45
b. P2,145.56 d. P7,710.94

Situation:
A man purchased a car with a cash price of P350,000.
He was able to negotiate with the seller to allow him to
pay only a down payment of 20% and the balance
payable in equal 48 end of the month installment at
1.5% interest per month. On the day he paid the 20th
installment, he decided to pay the remaining balance.
19. How much is the monthly payment?
a. P8,225.00 c. P19,345.50
b. P6,225.00 d. P9,234.00
20. What is the remaining balance that he paid?
a. P98,345.00 c. P235,124.00
b. P186,927.25 d. P32,125.90

21. Mr. Smith is planning his retirement. He has

decided that he needs to withdraw $12000 per year
from his bank account to supplement his other
income from Social Security and a private pension
plan. How much money should he plan to have in
the bank at the start of his retirement, if the bank
pays 10% per year, compounded annually, and if
he wants money to last for a 12-year retirement
period?
a. $81,766.15 c. $82,300.15
b. $80,746.10 d. $79,700.50

22. A father wants to set aside money for his 5-year-

old son's future college education. Money can be
deposited in a bank account that pays 8% per year,
compounded annually. What equal deposits
should be made by the father, on his son's 6th
through 17th birthdays, in order to provide $5000
on the son's 18th, 19th, 20th, and 21st birthdays?
a. $872.67 c. $842.40
b. $778.52 d. $900.70