PAMANTASAN NG LUNGSOD NG PASIG

Pasig City

MIDTERM EXAM IN ACC 302

NAME: ________________________________________ DATE; __________

USE YELLOW PAPER OR BOND PAPER

Solve the following problems. Show your complete solutions.

1. Using the 4 methods. Find the interest on Php 8,250 at 5 ¼% from Oct. 23, 2009 to Feb. 15,
2014.

2. If the money is worth 1

compounded quarterly, what equal payment at the end of 1
2
6 5%
2
3
and

7
4years respectively will equitably settle the following obligations

a. Php 1500 due now

1
b. Php 2,000 for
3
2years at 5%compounded semi – annually .
1
c. Php 5,000 for 5 years at

2, m= 4.
4%

d. Php 8,000 for 6 years at 6%, m = 1

USE COMBINATION OF DISCOUNTING AND ACCUMULATION METHOD

3. Micaela wants to accumulate Php 18,500 for 9 years with equal deposits made at the end of
each quarter in an account that pays 7%. What is the size of each deposit?

4. A certain company offers a 8 – year ordinary annuity with a guaranteed rate of 6.35%
compounded semi – annually. How much should you receive for these annuity if you pay
Php 15,000 semi – annually?

5. Sonny owes Jeffrey the following debts:

a. Php 800 due in 1 year.

b. Php 900 due in 9 months with accumulated simple interest at 6%
c. Php 400 due in 18 months with accumulated interest of 15%, m = 2.
If Sonny wishes to replace theses debts with 2 equal payment at the end of 10 months and 2 years
respectively. Find how much each payment is if the money is worth 12%compounded monthly.

USE PURE ACCUMULATION METHOD

 PAMANTASAN NG LUNGSOD NG PASIG
Pasig City

MIDTERM EXAM IN ACC 302

NAME: KEY DATE: __________

Actual
Oct Dec
.23 .31,2009 69
1,552 + + = −= .1 .15,2014 46
Jan Dec −=
1.
.1 .31,2011 365
Approximate
−=
2014 2 15
Jan Dec
−−
.1 .31,2012 365
2009 10 23
−=
−−
Jan Dec
4 3 22 days
.1 .31,2013 365
−− −=
−=
4(360) 3(30) 22 Jan Dec
Jan Feb 1,576days
.1 .31,2010 365

⎛⎞
−==⎜⎟
I Act Php ⎝⎠

1576
(8,250)(.0525) 1,870.15 e
⎛⎞
365
−==⎜⎟
I Act Php ⎝⎠

1576
(8,250)(.0525) 1,896.12 o
⎛⎞
360
−==⎜⎟
I Approx Php ⎝⎠

1552
(8,250)(.0525) 1,806.07

⎛ ⎞ 365
−==⎜⎟
I Approx Php ⎝⎠

1576
(8,250)(.0525) 1,831.17
0
360

a Php due now

.) 1,500
b MV Php
 .) 2,000(1 %) 2,377.37 = + =
7
2. 52

c MV Php .) 5,000(1 %) 6,253.75 = + =

20
9
8
d MV Php
.) 8,000(1 6%) 11,348.15
=+=
6

Using the Accumulation and Discounting

Method Final answer Php : 12,094.24

S
=
⎡⎤+−
(1 ) 1
R
i
s
n
⎢⎥
⎣⎦
i
18,500
R (1 %) 1 7
s
=⎡ ⎤ + −
⎢⎥
47
3.36 %
⎣⎦
4
= 49.566
R 18,500 129
s
R Php
s
= 373.24
6.35
%
A
⎡⎤− ⎢⎥
⎣⎦
−+
⎢⎥
16
6.35 1 (1 %)
= 2 15,000
⎢⎥ 2

4. = (14.27
A 15,000 4728)
A Php = 214,120.9
1

12%
5. Settlement Rate: 1%
 r
i
m
===
12
a Php due in year
.) 800 1
⎡⎤
b MV Php
=+=⎢⎥
.) 900 1 (.06)( ) 940.50 ⎣⎦

9
12
⎡⎤
c MV Php
15 =+=⎢⎥
.) 400 1 % 496.92 ⎣⎦

Using the Pure accumulation method.

Final answer Php : 1,172.77