Review Problem

1. A man deposited P5000 in a bank at a rate of

10% per annum for 10 months and 25 days. Find
the ordinary simple interest.
a. P451.50 ` c. P441.50
b. P431.50 d. P461.50
2. A man deposited P5000 in a bank at a rate of
12% per annum from January 10,1999 to
November 18, 1999. Find the exact simple
interest.
a. P531 c. P513 `
b. P315 d. P351
3. A man wants to receive P800 immediately and pay
it back in one year. The bank charges a simple
discount of 6% payable at once. What is the rate of
interest?
a. 4.38% c. 5.38%
b. 6.38% ` d. 7.38%
4. A man wants to receive P800 immediately and pay
it back in one year. The bank charges a simple
discount of 6% payable at once. How much must be
borrowed?
a. P841.06 c. P851.06 `
b. P861.06 d. P831.06
5. Find the effective rate of interest equivalent
to 12% compounded monthly.
a. 12.57% c. 12.68% `
b. 12.75% d. 12.54%
6. Compute the equivalent rate of 6%
compounded semi-annually to a rate
compounded quarterly.
a. 5.69% c. 6.96%
b. 5.96% ` d. 6.69%
7. Accumulate P5000 for 10 years at 8%
compounded quarterly. Find the compounded
interest at the end of time.
a. P6020.20 c. P6030.20
b. P6050.20 d. P6040.20 `
8. Find the accumulated amount of P5000 when
in a bank at a rate of 12% compounded
continuously for 5 years.
a. P9, 110.60 ` c. P9, 210.60
b. P9, 310.60 d. P9,410.60
9. A young engineer bought a second hand car
worth P150,000 if paid in cash. On the
installment basis, he paid a down payment of
P50,000; P30,000 at the end of one year;
P40,000 at the end of 2 years and a final
payment at the end of 4 years. What will be
the final payment if money worth 15% per
annum?
a. P73,374.38 c. P75,374.38
b. P74,374.38 d. P76,374.38 `
10. A man bought a car in installment basis.
If he pays P10,000 per month at a rate of
15% compounded monthly for 3 years,
find the accumulated amount of the
money paid for the car.
a. P451,155.05 ` c. P551,155.05
b. P351,155.05 d. P251,155.05
11. A new generator has just been installed. It is
expected that there will be no maintenance
charges until the end of 5th year, when P300
will be spent at the end of each successive year
until the generator is scrapped at the end of its
thirteenth year of service. What sum of money
set aside at the time of installation of the
generator at 6% will take care of all the
maintenance for the generator?
a. P1,492.10 c. P1,292.10
b. P1,592.10 d. P1,392.10 `
12. A wealthy man donated a certain amount of
money in a bank at a rate of 12% compounded
annually to be able to pay the following
scholarship awards; P4,000 per yr. for the first 5
yrs.; P6,000 per yr. on the next 5 yrs. And
P9,000 per yr. on the years thereafter. Find the
amount of money deposited by the man.
a. P51,839.78 c. P50,839.78 `
b. P52,839.78 d. P53,839.78
13. The maintenance cost for a sewing machine
this year is expected to be P500. The cost will
increase by P50 each year for the subsequent
9 years. The interest is 8% compounded
annually. What is the present worth of
maintenance for the machine over full 10
years?
a. P4,553.88 c. P4,453.88
b. P4,653.88 ` d. P4,753.88
14. The annual maintenance cost of a generator
is P1,000 after 1 yr. and it is estimated to
increase by 10% each year for a the next 7
years. Find the present worth of the
maintenance costs if the interest is 15%
compounded annually.
a. P5,784.14 c. P5,584.14
b. P5,884.14 d. P5,985.14 `
15. A bridge has an initial cost of P600,000
and whose estimated life is 30 years. The
annual maintenance cost is P6,000 and the
cost of repair is P25,000 every 5 years. Find
the capitalized cost if the salvage value is
P50,000 and cost of money is 9%.
a. P775,506.92 c. P757,914.5 `
b. P767,506.92 d. P577,514.9
16. An engineer bought an equipment for
P500,000. He spent an additional amount of
P30,000 for installation and other expenses.
The estimated useful life of the equipment is 10
years. The salvage value is x% of the first cost.
Using SLM of depreciation, the book value at
the end of 5 years will be P291,500. What is the
value of x?
a. 8% c. 12%
b. 10% ` d. 14%
17. A machine costs P60,000 and the salvage value
is P10,000 after 10 yrs. Find the depreciation
using SFM if i = 15%.
a. P2,462.60 ` c. P2,162.60
b. P2,262.60 d. P2,362.60
18. A machine costs P60,000 and the salvage value
is P10,000 after 10 yrs. Find the depreciation
charge after 4th year using DBM.
a. P5,549.88 c. P5,749.88 `
b. P5,649.88 d. P5,849.88
19. A machine costs P60,000 and the salvage value is
P10,000 after 10 yrs. Find the depreciation charge after
4th year using SYDM.
a. P6, 633.64 c. P3,363.64
b. P6, 363.64 ` d. P6,563.64
20. A machine costing P720, 000 is estimated to have a
life of 10 years. If the annual rate of depreciation is
25%, determine the total depreciation using a constant
percentage or the declining balance method.
a. P678, 454.27 c. P677,454.27
b. P679, 454.27 ` d. P676,454.27
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